Financial Crime World

Anti-Money Laundering (AML) and Know Your Customer (KYC) Requirements in Malawi

===========================================================

As a business operating in Malawi, it is essential to comply with the country’s regulatory requirements for Anti-Money Laundering (AML) and Know Your Customer (KYC). This guide provides an overview of the key points to ensure compliance.

Proof of Identity

To verify customer identity, you can use the following documents:

  • Passport: A valid passport is accepted as proof of identity.
  • Driving License: A valid driving license can also be used for address verification.
  • Utility Bills: You can use a current utility bill (gas, electricity, telephone, or mobile phone bill) issued within the last 3 months.
  • Government-Issued Documents: Government-issued documents containing the end-user’s address and name are also acceptable.
  • Bank Statements: Bank statements not older than 3 months can be used for address verification.

Timing of Verification

Identity verification is a continuous process that requires multiple instances as recommended. It should be done:

  • Upon Onboarding: When onboarding a new customer, verify their identity and comply with AML and KYC requirements.
  • Transaction Data Thresholds: Verify transaction data above certain monetary thresholds defined in Malawi’s regulation.

Politically Exposed Persons (PEPs)

As a business, you must determine if your customers are:

  • Politically Exposed Persons: Individuals holding public offices or exhibiting higher-risk profiles.
  • Use Shufti Pro’s AML Screening Service: Shufti Pro provides an AML Screening service to help fulfill these obligations by screening against watchlists and databases of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Reliance on External Services

While relying on external services like Shufti Pro can be beneficial, businesses remain liable for maintaining compliance and fulfilling AML and KYC obligations.

Record Retention

Businesses must retain data for not less than 7 years as part of their AML and KYC obligations. If the information is processed, collected, and managed by a relevant third-party, businesses are liable to collect all necessary information without undue delay.