Financial Crime World

Malawi Turns Up Heat on Financial Crime Prevention: “No More Kid Gloves” for Perpetrators

Attorney General Chikosa Silungwe has warned that Malawi will no longer tolerate financial crimes and corruption, which have drained public resources. The government has launched a new strategy to combat financial and related crimes, bringing together key stakeholders from the Attorney General’s office, Anti-Corruption Bureau (ACB), Malawi Revenue Authority (MRA), Reserve Bank of Malawi (RBM), and Financial Intelligence Authority (FIA).

New Strategy Aims to Combat Financial Crimes

The Coordinated Criminal Law Enforcement Strategy aims to investigate and prosecute financial crimes related to common assault, financial, and related crimes that occurred between 2014 and 2020. The strategy emphasizes the importance of coordination among stakeholders to combat financial crimes.

  • Key stakeholders involved in the strategy include:
    • Attorney General’s office
    • Anti-Corruption Bureau (ACB)
    • Malawi Revenue Authority (MRA)
    • Reserve Bank of Malawi (RBM)
    • Financial Intelligence Authority (FIA)

Emphasis on Lifestyle Audit and Combating Corruption

Silungwe emphasized the need for a lifestyle audit, saying “let us stop clapping hands for crooks who plunder our public resources.” The strategy aims to track traffickers and share information on issues of financial crime.

  • Malawi has been plagued by rising cases of financial crimes over the years, with losses estimated at $30 million through money laundering.
  • The RBM Governor, William Banda, said the strategy will help track traffickers and share information on issues of financial crime.

Challenges Faced by ACB

The ACB Director of Investigations and Prosecutions, Crispin Khunga, lamented that his organization has been facing challenges investigating financial crimes and corruption matters due to lack of coordination. The new strategy aims to address this by enabling the bureau to investigate matters in a coordinated fashion with key partners.

Caution from Director of Public Prosecutions

Director of Public Prosecutions Steven Kayuni cautioned that the strategy should be complemented by instruments that will enable justice and security to prevail. He expressed concern that the law has often been seen as a means of regulating human conduct and punishing criminal offenders rather than promoting social and economic development.

Financial Crime Statistics

  • A 2019 assessment by the FIA revealed that Malawi lost $7.4 million to illegal foreign exchange externalization in 11 months.
  • The United Nations Conference on Trade and Development estimated that the country loses five percent of its total wealth annually to illicit financial flows.