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Bwalya, 54, was also fined 100,000 Swiss francs ($100,000, 88,000 euros) in connection with "gifts and other benefits" he took from controversial Qatari businessman Mohammed Bin Hammam, FIFA's independent ethics committee said in a statement.
Bin Hammam, an extremely wealthy former football executive, has been banned from the sport for life over corruption. He was accused of trying to buy votes when he ran for FIFA's presidency against Sepp Blatter in 2011.
Bwalya starred for PSV Eindhoven and was named African footballer of the year in 1988. He was elected as chief of the Zambian federation in 2008.
FIFA's ethics watchdog began investigating him in February of 2017.