Malawi Introduces New Requirements for Reporting Financial Crimes

The Malawian government has issued a notice outlining new requirements for reporting financial crimes in the country. The notice, Government Notice 10 of 2020, was published in the Malawi Gazette Supplement 7A on May 15, 2020.

What You Need to Know

• All entities that engage in financial activities must report any suspicious transactions or transactions related to financial crime to the Financial Intelligence Unit (FIU).
• The FIU is responsible for collecting and analyzing financial intelligence to prevent and detect money laundering, terrorist financing, and other financial crimes.
• Reports must be submitted on a quarterly basis, starting from June 30, 2020.

Reporting Requirements

• Reports must include information such as:
  • Name of the entity
  • Nature of the transaction
  • Amount involved
  • Any other relevant details
• The notice outlines the procedures for submitting reports, including the format and content of the reports, as well as the deadline for submission.

Penalties for Non-Compliance

• Entities that fail to submit reports or provide incomplete information may be subject to:
  • Fines
  • Other penalties

Why These Changes Matter

The introduction of these new requirements is aimed at strengthening Malawi’s financial sector and preventing financial crimes such as money laundering and terrorist financing. The government has also emphasized the importance of cooperation between financial institutions and law enforcement agencies in detecting and prosecuting financial crimes.

Outstanding Amendments

• There are outstanding amendments to this notice, which have not yet been applied.
• A detailed history of the document can be found on the Malawi Government website.