Freezing Directives Extension Sought by Financial Intelligence Authority

Lilongwe, Malawi - FIA Seeks Extension of Freezing Directives on Bank Accounts Linked to Money Laundering Investigation

The Financial Intelligence Authority (FIA) has approached the High Court of Malawi seeking an extension of its freezing directives on certain bank accounts linked to a money laundering investigation. The application is based on the ongoing inquiries into alleged financial crimes and the need for further time to conduct necessary investigations.

Background and FIA’s Application

The FIA’s application is supported by a sworn statement outlining the basis of its application, including background information on the case and the steps it has taken so far. However, the defendant in the matter, Norman Paulosi Chisale, opposed the application, arguing that the FIA had failed to provide sufficient evidence linking the funds in question to proceeds of an offence under the Financial Crimes Act.

Court Ruling

On January 6, 2021, Judge Kenyatta Nyirenda delivered a ruling rejecting the defendant’s arguments and granting the FIA’s application for an extension of the freezing directives for four months. The judge noted that the FIA had established a good case for further investigation and that its powers under section 23(4) of the Financial Crimes Act are not limited to specific transactions.

Defendant’s Opposition

The defendant, Norman Paulosi Chisale, opposed the application, arguing that the FIA had failed to provide sufficient evidence linking the funds in question to proceeds of an offence under the Financial Crimes Act. He also sought permission to access the frozen accounts to meet his reasonable expenses.

Judge’s Decision

The judge refused the defendant’s prayer to have his reasonable expenses met from the frozen accounts, citing sections 70, 71, and 108 of the Financial Crimes Act. According to the judge, these provisions relate specifically to preservation orders, which have not been granted in this case. The judge further noted that the defendant had failed to disclose his property and had not met the conditions set by the Act for expenses to be paid out of the frozen accounts.

Impact on FIA’s Efforts

The FIA’s victory in this matter is seen as a significant step forward in its efforts to combat financial crimes in Malawi. The authority will now have four months to complete its investigations and determine whether any further action is necessary.

Conclusion

The extension of the freezing directives is a crucial step in the ongoing money laundering investigation, allowing the FIA to continue its inquiries without interruption. The case serves as a reminder of the importance of effective financial intelligence gathering and enforcement in preventing and combating financial crimes.