Assignment one

(a) Money Laundering is defined as the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses. It is the process whereby the proceeds of crime or dirty money are transformed into ostensibly or layered with legitimate money, income or other assets. Money laundering refers to a financial transaction scheme that aims to conceal the identity, source, and destination of illicitly-obtained money. The Prohibition and Prevention of Money Laundering Act No. 14 of 2001 and the Bank of Zambia Anti-Money Laundering Directives 2004 prohibits and prevents money laundering in Zambia.

Critically discuss the arguments for (Advantages) and against (Disadvantages) of money laundering.

b) A central bank, like Bank of Zambia, is given a wider range range of public responsibilities and endowed with corresponding broad array of executive powers. Discuss whether or not the bank of Zambia is independent.