Regulatory Alerts2002-01-01
Financing of Terrorist Activities
The Bank of Zambia mandates all commercial banks and financial institutions to immediately report any accounts linked to 'The Al-Aqsa Martyr's Brigade' to the central bank. This requirement follows the group's formal designation as a terrorist organization and aims to prevent financial institutions from being exploited for illicit funding. Compliance is strictly required to protect institutional reputations and maintain public confidence, as handling terrorist funds triggers severe ethical, political, and regulatory consequences.
# BANK OF ZAMBIA
## OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
13 May 2002
CB Circular No: 10/2002
TO : All Commercial Banks and Financial Institutions
## FINANCING OF TERRORIST ACTIVITIES
In co-operation with other international supervisors and as a follow up to our CB Circular No.11/98 and CB Circular No 30/2001, concerning minimizing the possibility of banks and financial institutions being abused by criminal elements, the Bank of Zambia wishes to inform all banks and financial institutions that any account operated in the name 'The Al-Aqsa Martyr's Brigade' should be brought to our attention.
The Al-Aqsa Martyr's Brigade has been added to the list of terrorist organisations.
As you may be aware, accepting and managing funds from criminal and terrorist entities severely damages a bank's reputation and can undermine public confidence in the ethical standards of the entire banking system because these activities attract extensive media attention and strong political reaction.
Your utmost co-operation is anticipated. Should you require any further clarification, do not hesitate to contact the Director of Bank Supervision.
Dr Abraham Mwenda
Deputy Governor - Operations
Bank square, Cairo Road, P O Box 30080, Lusaka, 10101, Tel: 260-1-226844, Fax: 260-1-237070, email: amwenda@boz.zm
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