Melo Media, Friday, 10th November, 2023
Transparency International Zambia (TIZ) has raised concerns about the recent findings by the Drug Enforcement Commission (DEC) regarding the potential infiltration of significant amounts of counterfeit money into circulation through financial institutions.
The presence of counterfeit money in circulation has raised concerns among financial institutions. DEC Director General Nason Banda has expressed worry about the increasing prevalence of counterfeit notes, suggesting that these criminal activities may involve not only individuals but also entities within the financial system.
In response to the discovery of organized white-collar crime involving counterfeit money, Maurice Nyambe, the Executive Director of TIZ, emphasized the need for increased collaboration among key institutions to protect the integrity of the country’s financial system.
Mr. Nyambe has emphasized the urgent need for prompt and effective measures to combat the increasing risk of counterfeit money infiltration in the country’s financial institutions.
The presence of counterfeit money in circulation poses a significant risk to financial institutions. Economist Shabdin Mweemba explains that if counterfeit money becomes widespread, it can lead to an increase in the overall money supply. This excess of currency within the economy can then contribute to inflation and create disruptions in the money markets. Therefore, it is crucial for financial institutions to implement measures to detect and prevent the infusion of counterfeit money.
