The Budget and Finance Committee of Parliament last week demanded answers from banks on a case of externalisation of forex using Automated Teller Machine (ATM) cards.
Recently, Fiscal Police at Kamuzu International Airport arrested five women for suspected money laundering. They were found in possession of 338 ATM cards on their arrival from Dubai.
On Wednesday, Bankers Association of Malawi (Bam) Chief Executive Officer, Lynes Nkungula, said the banks did notice unusual and suspicious transactions.
She, however, said most of such transactions are usually reported to Financial Intelligence Authority and the Reserve Bank of Malawi.
She did not specify whether the issues at hand were reported to the two institutions. Nkungula also told the committee that the banks are not involved in the scandal.
“As entities, banks are not involved in these suspicious transactions but, maybe, some misguided members within the banks can be behind that but not banks as corporate institutions,” she said.
She also disclosed that some ATM cards involved in the scandal have since been blocked. She did not say how many.
Sitting in for the chairperson of the committee, Ralph Jooma, said the banks do not look at the matter as a serious issue requiring utmost attention.
“We confronted them on why they waited for the police to make arrests before divulging information on this issue. So, we believe there are officials in the banks involved,” Jooma said.
He further said the committee was not impressed with the explanations Bam officials gave. He said they lacked honesty.
