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Malawi Government Introduces New Financial Crime Reporting Requirements

The Malawi government has recently introduced new regulations aimed at strengthening the country’s fight against financial crime.

Enhanced Fight Against Financial Crime

According to a notice issued by the government, all financial institutions and designated businesses are now required to report suspicious transactions and other financial crimes to the Financial Intelligence Unit (FIU). The new regulations, contained in Government Notice 34 of 2020, came into effect on July 31, 2020.

Key Requirements

  • Report all suspicious transactions, regardless of their value, to the FIU within a specified timeframe.
  • Maintain records of all transactions for at least five years and provide access to these records upon request by the FIU or other law enforcement agencies.
  • Identify and verify the identities of customers.
  • Report any unusual patterns of activity that may indicate criminal behavior.

The Financial Crimes Act, enacted in 2018, provides the legal framework for the new regulations. The act aims to prevent and combat money laundering, terrorist financing, and other serious financial crimes.

Compliance

The government has urged all financial institutions and designated businesses to comply with the new requirements, warning that failure to do so may result in penalties and fines. The notice is available on the Ministry of Finance’s website for public viewing.

Strengthening Financial Sector

This development comes as part of Malawi’s efforts to strengthen its financial sector and combat financial crime. The country has been working closely with international partners, including the International Monetary Fund (IMF), to improve its financial regulatory framework and enhance cooperation among law enforcement agencies.