MALAWI TO ENACT AML BILL 2016 AS PART OF DRIVE TO STRENGTHEN REGULATORY ENVIRONMENT

Malawi State President, Professor Arthur Peter Mutharika, has said that his government will table the Anti-Money Laundering Bill 2016 during the current sitting of parliament as commitment to strengthen the regulatory environment of the financial sector.
The president said this on 20 May 2016 when he delivered the State of the Nation Address and opened the 2016/2017 Budget Meeting of Parliament.

Said the president: "In order to improve the stability of the financial sector, Government implemented a number of initiatives in the 2015/2016 financial year. We focused on strengthening the regulatory environment and improving the financial infrastructure for the sector. I am pleased to report that the following Bills have been developed for tabling in this house in order to strengthen the regulatory environment: The Credit Reference Bureau (Amendment) Bill, 2015; The Payment Systems Bill, 2016; The Financial Services Amendment Bill, 2016; The Banking Amendment Bill, 2016; The Malawi Deposit Insurance Corporation Bill; and The Anti-Money Laundering Bill, 2016."

He added that the aim of his government is to make the regulatory framework of the sector tough and conducive.

Among others, the Anti-Money Laundering Bill 2016 seeks to extend powers and functions of the FIU to include investigations in order to ensure that criminal proceeds are followed thoroughly and confiscated. Further, the bill will enable supervisory authorities to apply administrative penalties to financial institutions that do not comply with the law. It will also enable Malawi to come up with mechanisms for freezing assets of those suspected to be involved in the proliferation of weapons of mass destruction; to introduce civil forfeiture alongside criminal forfeiture; and to designate an administrator of confiscated property to ensure that the confiscated property is maintained and disposed of accordingly.

Major developments leading to the drafting of the bill include engagement of a consultant in 2013, holding of consultation meetings with various stakeholders in 2013, and dedication of a senior officer in legislation drafting by the Ministry of Justice and Constitutional Affairs in December 2015 to work with the Malawi FIU, Reserve Bank of Malawi, Ministry of Finance, and Ministry of Justice in finalising the draft bill.

The process of coming up with the Anti-Money Laundering Bill 2016 has been financially supported by the World Bank through the Financial Sector Technical Assistance Project (FSTAP).

Malawi enacted the Money Laundering, Proceeds of Serious Crime and Terrorist Financing Act (ML Act) in 2006. The law has been under review from 2012. The review of the ML Act was necessitated by the recommendations by the World Bank during the Mutual Evaluation conducted in 2008 on Malawi's implementation of Financial Action Task Force (FATF) Standards. Further, the review was necessitated by revision of the FATF Standards in 2012. Because major changes are to be effected, the ML Act will have to be repealed and then the Anti-Money Laundering and Combating Terrorist Financing (AML/CTF) Bill passed into law.



News & Updates

This page was last updated on RBM BOARD MEMBERS SENSITISED ON AML/CFT New board members of the Reserve Bank of Malawi (RBM) were on 30 June 2016 sensitised on anti-money laundering and combating the financing of terrorism (AML/CFT) concepts.. MALAWI FIU RELOCATES TO NEW PREMISES The Financial Intelligence Unit (FIU) is pleased to announce that it has relocated to new office premises in Area 3, plot 3/071. MALAWI TO ENACT AML BILL 2016 AS PART OF DRIVE TO STRENGTHEN REGULATORY ENVIRONMENT Malawi State President, Professor Arthur Peter Mutharika, has said that his government will table the Anti-Money Laundering Bill 2016 during the current sitting of parliament as commitment to strengthen the regulatory environment of the financial sector...
MALAWI FIU HAS A SERVICE CHARTER The Malawi FIU has developed a Service Charter as part of Public Sector Reform Program being implemented by the government with the aim of ensuring that all government ministries, departments and agencies provide high level of services to the nation...
BOARD MEMBERS OF VANGUARD LIFE ASSURANCE SENSITISED ON AML The FIU sensitised board members of Vanguard Life Assurance Company in Blantyre on 30 April 2016. The objective of the sensitisation workshop was to equip the life insurance company's board with knowledge on money laundering and terrorist financing concepts....
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)....
STUDY REVEALS THAT POOR AML CONTROLS POSE HIGH RISK FOR MVTS AND CE SECTORS A study by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) on money laundering and terrorist financing (ML/TF) through the money or value transfer service (MVTS) and currency exchange (CE) sectors revealed that poor AML controls is one of the major factors that pose high ML risk to the said sectors...
RBM ISSUES DIRECTIVE ON FIT AND PROPER REQUIREMENTS FOR COMPLIANCE OFFICERS AND OTHER SENIOR OFFICIALS OF COMMERCIAL BANKS The Reserve Bank of Malawi (RBM) issued a Financial Services Directive in 2014 on requirements for recruitment or appointment of Compliance Officers to be followed by all commercial banks...