Financial Crime World

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FIA Unveils Annual Report for 2017/2018 Financial Year

The Financial Intelligence Authority (FIA) has released its annual report for the 2017/2018 financial year, highlighting significant achievements in combating financial crimes.

Investigations and Enforcement Actions

In a statement, the FIA revealed that it conducted five investigations into:

  • Authenticity of public sector payments
  • Illegal externalization of foreign currency
  • Theft of public funds

These investigations led to:

  • Freezing of bank accounts of suspects
  • Analysis of transactions related to dubious pension payments at the Department of Accountant General

Joint Operations and Arrests

The FIA participated in a joint operation with the Reserve Bank of Malawi and the Fiscal and Fraud Unit (FFU) to investigate illegal externalization of foreign currency and money laundering using front companies. The operation resulted in:

  • Charging four suspects with money laundering and illegal externalization of foreign currency
  • Arresting one suspect in April 2018

Analysis and Findings

Investigations established that some investors registered businesses in Malawi without carrying out declared activities, resulting in loss of foreign exchange through trade-based money laundering.

The FIA also conducted financial analysis on applicants for:

  • Business Residence Permits (BRPs)
  • Permanent Residence Permits (PRPs)

A total of 230 applications were vetted, with 66 found to have anomalies, including:

  • Fake bank statements
  • Lack of required certificates

Dissemination and Feedback

The FIA disseminated 19 cases to law enforcement agencies (LEAs) for investigation and possible prosecution of suspected:

  • Tax evasion
  • Corruption
  • Abuse of office
  • Fraud
  • Theft
  • Illegal externalization of funds
  • Money laundering

The FIA also received 16 requests from LEAs and held seven feedback meetings with ACB, MPS, and Department of National Parks and Wildlife on joint operations.

Conclusion

The report emphasizes the importance of financial intelligence in combating financial crimes and highlights the need for continued collaboration between the FIA and other authorities to ensure effective implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures.