MALAWI TO UNDERGO AML/CFT MUTUAL EVALUATION

Malawi will be assessed for the second time on how it is implementing anti-money laundering and combating the financing of terrorism (AML/CFT) recommendations as guided by the Financial Action Task Force (FATF).

The assessment, known as mutual evaluation, is expected to commence towards the end of 2015 with an expert team of assessors expected to come for an on-site visit in July 2016.

During the assessment process, a number of key private and public institutions which implement AML/CFT measures will be asked to provide statistics for desk review around October 2015. In July 2016 the assessors will come to Malawi and conduct face-to-face interviews with financial institutions, supervisory authorities, law enforcement agencies, and other Government ministries and agencies connected with AML/CFT policy development and AML/CFT measures implementation.

The forthcoming assessment will focus on two inter-related components of technical compliance and effectiveness. Under technical compliance, Malawi will be assessed on whether or not it has the necessary laws, regulations or other required measures in force and effect as well as AML/CFT institutional framework. On the other hand, under effectiveness the country will be assessed as to whether or not its AML/CFT systems are working as well as the extent to which Malawi is achieving a defined set of outcomes.

One of the major areas that Malawi may be lacking is on the AML/CFT laws since the process of reviewing the Money Laundering, Proceeds of Serious Crime and Terrorist Financing Act has been dragging. As a matter of urgency, the country has to work on finalization of the review and enactment of the amended AML bill as soon as possible. The aim of amending the Act is to align it with the FATF Recommendations which were revised in 2012.

It is our responsibility as a country to demonstrate to the assessors that we have complied with the FATF Standards and that our AML/CFT regime is effective.

The assessment will be done on the basis of the FATF Recommendations, FATF Interpretative Notes and FATF Methodology of Mutual Evaluations.

The first mutual evaluation for Malawi took place in 2008 and a full report on that can be accessed on this website. A copy of Procedures for the ESAAMLG second Round of Mutual Evaluations is also available on this website. Download ESAAMLG Mutual Evaluation Procedures

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