Reserve Bank of Malawi (RBM) has said it is investigating over 11 multinational companies and individuals for possible transfer pricing.
This came out at the Financial Services Lawyers Conference in Mangochi on Monday the central bank organised in collaboration with the Malawi Law Society (MLS).
RBM Deputy Governor, Grant Kabango, said RBM believes that legal support is paramount in curbing financial crimes, hence, the lawyers’ conference.
He said the companies are suspected to be externalising agricultural produce and products by under-declaring sale prices and concealing amount of foreign currency expected to be received by the country.
“We believe that the rest of the funds are being returned outside the country, thus defrauding the country of its export proceeds. The total amount suspected under this criminal activity has not yet been quantified but is estimated to be in billions of Malawi kwacha,” Kabango said.
Malawi Law Society vice president, Patrick Mpaka, rated the conference as very importance for legal practitioners to be updated on financial services laws and a milestone in scoring points for their practice.
Other issues discussed include counterfeit currency flooding the liquidity system, illegal externalisation of foreign currency, money laundering and asset recovery regime.