Financial Crime World

Malawi Makes Progress in Combating Money Laundering and Terrorist Financing

Recent Review Highlights Significant Progress Made by Malawi

A recent review by international financial experts has highlighted significant progress made by Malawi in implementing measures to combat money laundering (ML) and terrorist financing (TF). The country has demonstrated a good understanding of ML risks, particularly among financial institutions.

Key Areas of Progress

  • Good understanding of ML risks among financial institutions
  • Results of the National Risk Assessment (NRA) conducted in 2018 provided a comprehensive framework for assessing the country’s vulnerabilities to ML/TF and identifying areas that require improvement

Areas Requiring Further Attention

  • Stronger oversight of non-profit organizations (NPOs)
  • Improved monitoring of cross-border wire transfers
  • Increased transparency of legal persons and arrangements
  • Effective risk-based supervision of non-bank financial institutions and designated non-financial businesses and professions (DNFBPs)

Key Challenges

  • Handling of mutual legal assistance (MLA) and extradition matters: authorities need to establish a proper case management system and maintain accurate information on ultimate beneficial ownership (UBO)

Coordination and Cooperation

  • Good national and international coordination and cooperation enabled effective sharing of financial intelligence and other relevant information
  • Development of a National AML/CFT Policy to promote coordination and cooperation on AML/CFT matters

Future Plans

  • Finalization of the National AML/CFT Policy
  • Development of action plans, policies, and programs supported by a risk-based allocation of resources approach

Conclusion

While there are still areas for improvement, Malawi’s efforts demonstrate a commitment to combating ML/TF and protecting the financial system from these threats. The country is making significant progress in implementing measures to combat money laundering and terrorist financing, and with continued focus on key areas, it can continue to strengthen its AML/CFT regime.