Malawi

New Documents

Malawi FIA Urges Real Estate Agents to Complete AML/CTF Assessment

The Financial Intelligence Authority of Malawi published a press release calling on all individuals and companies engaging in real estate business to complete an anti-money laundering and counterterrorist financing assessment form by Feb. 28, 2020.

February 15, 2021

Malawi High Court Issues First Non-Conviction-Based Forfeiture Order

The High Court of Malawi ordered the country’s first non-conviction-based forfeiture order under the new Financial Crimes Act of 2017.

October 14, 2020

Basel Interviews Leadership of Anti-Corruption Initiative in Malawi

July 15, 2020

Basel Institute Highlights Role in Developing Malawi’s New Anti-Corruption Strategy

December 13, 2019

ESAAMLG: Malawi Maintains Strong AML/CTF Framework, Must Still Improve Technical Compliance

October 24, 2019

News

Weekly Roundup: FBI Sought Financial Records in Manafort Raid, Mexican Soccer Player’s Assets Frozen, and More

Philippines Exits AML Watchlist, China’s new payment clearing house to screen for illicit transfers, and more, in this week’s roundup.

August 11, 2017

Midweek Roundup: Ex-ICBC Bankers Allegedly Dodged Compliance Controls in Spain, Brexit Threatens 40,000 UK Banking Jobs, and More

Former U.S. ethics chief accuses President Trump of creating a kleptocracy, Brazil’s Odebrecht accepts penalty for laundering funds through Panamanian banks, and more, in the midweek roundup.

August 2, 2017

Weekly Roundup: PayPal Under US Investigation for Suspected AML Breaches, North Korean Banks Using Shell Companies to Circumvent Sanctions, and More

February 10, 2017

Midweek Roundup: Israeli Intermediaries Get KYC Requirements, HSBC Whistleblower Promises New Revelations, and More

May 6, 2015

Midweek Roundup: Jury Acquits Banker Accused of Orchestrating Tax Evasion, U.S. Offers Financial Channel to Iran, and More

November 5, 2014

Enforcement Actions

0 Items Found

Key Documents

Malawi Enacts AML, Counterterrorist Financing Law

August 24, 2006

Malawi Issues KYC Standards

January 1, 2005

Important Facts

  • The U.S. State Department identifies Malawi as a monitored jurisdiction. Malawi is not a regional financial center. Most illegal profits come from public corruption and the country is currently addressing a major corruption scandal centering on the looting of public accounts by public officials. High-ranking officials, including the Financial Intelligence Unit Monitoring and Analysis Manager, have been arrested for money laundering and other corruption-related offenses. Another significant source of illicit funds is the production and trade of cannabis sativa (Indian hemp), which is extensively cultivated in remote areas of the country. Human trafficking, vehicle hijacking and fraud are also areas of concern. Porous borders with Mozambique, Zambia and Tanzania exacerbate smuggling and the laundering of funds. Goods smuggling is believed to greatly contribute to the generation of illicit proceeds being laundered through the financial system. Some of the trade-based crime in the country is reportedly linked to Pakistan and India. Informal value transfer systems, such as hawala, also concern Malawian authorities. As a cash-based economy, Malawi usually has few paper trails to follow in financial investigations.
  • KYC Covered Entities:  Banks, microfinance institutions, leasing and finance companies, lawyers, legal practitioners, notaries, casinos and other gaming entities, real estate agents, trust and company service providers, foreign exchange bureaus, accountants, auditors, dealers in precious metals and stones, safe custody services, buyers and sellers of gold bullion, stock brokers, and the stock exchange
  • STR Covered Entities:  Banks, foreign exchange bureaus, microfinance institutions, money transmitting firms, discount houses, insurance companies, real estate agencies, casinos, accountants, lawyers, dealers in precious metals and stones, capital markets
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 36 (2015); Convictions: 11 (2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 17 High : 0
Largely Compliant : 12 Substantial : 0
Partially Compliant : 10 Moderate : 7
Non-Compliant : 1 Low : 4

BASEL i

Rank : 80/146
Score : 5.86/10

TRANSPARENCY INTERNATIONAL i

Rank : 123/180
Score : 31/100

Tax Justice Network i

Rank : 110/174
Score : 33/100