Malawi

New Documents

The Basel Institute on Governance hosted a three-day training seminar for members of Malawi’s law enforcement agencies on combating wildlife crime.

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.

News

Enforcement Actions

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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 : 76/110
Score : 5.78/10

TRANSPARENCY INTERNATIONAL i

Rank : 129/179
Score : 30/100

Tax Justice Network i

Rank : 110/174
Score : 33/100