Financial Crime World

Financial Crime Authority Gets Powers and Functions

The Financial Crime Authority (FCA), established to combat money laundering and terrorist financing, has been granted sweeping powers and functions to ensure its effective operation.

Mandate and Responsibilities

According to an Act of Parliament, the FCA is responsible for:

  • Requesting, receiving, and analyzing reports from reporting institutions, including financial institutions and entities providing services related to financial transactions.
  • Investigating suspicious transactions and identifying individuals or organizations involved in money laundering and terrorist financing activities.
  • Freezing and seizing assets suspected to be proceeds of crime, as well as recovering stolen assets on behalf of victims.
  • Imposing penalties and fines on individuals or organizations found guilty of violating anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.

Public Awareness and Training

The FCA will also play a key role in promoting public awareness about money laundering and terrorist financing, as well as providing training and guidance to reporting institutions and other stakeholders on AML/CFT compliance.

Appointment of Director General

The Act outlines the process for appointing the Director General of the FCA:

  • The Minister responsible for finance will advertise the position and carry out shortlisting and interviews to select a minimum of two and a maximum of three candidates.
  • The President will then appoint one of the candidates as Director General, subject to certain conditions.

Vacation from Office

The Act provides for situations where the Director General may be removed from office due to:

  • Incapacitation
  • Bankruptcy
  • Misconduct or incompetence In such cases, the President can appoint a committee to inquire into the matter and furnish its findings. The committee will consist of three members with expertise in law, economics, or finance.

The Director General can also resign their office by giving written notice to the Minister.

Experts Welcome Move

Financial experts have welcomed the establishment of the FCA, citing it as a major step towards combating money laundering and terrorist financing in Malawi. They believe that the Authority’s powers and functions will:

  • Improve transparency and accountability in the financial sector
  • Promote economic stability and growth

“This is a positive development for Malawi,” said one expert. “The establishment of the FCA shows our commitment to combating financial crime and promoting good governance. We expect the Authority to play a key role in protecting our economy from illegal activities.”

Another expert added: “The FCA’s powers and functions are comprehensive and will help to prevent money laundering and terrorist financing. We believe that the Authority will be effective in identifying and prosecuting those involved in such activities.”

Conclusion

Overall, the establishment of the FCA is seen as a major step towards strengthening Malawi’s financial sector and promoting economic stability and growth.