Funds under the Confiscation Fund are set for utilisation following the issuing of regulations by Finance, Economic Planning and Decentralisation Minister Joseph Mwanamvekha.
This comes close to 10 years after, in 2017, an account for the fund was established with the purpose of depositing funds and property confiscated to the government under civil or criminal processes, among others.
Since the government started depositing the funds, the money was not used due to lack of regulations, among other things.
The regulations—published in the Malawi Gazette supplement on July 24, 2026—outline processes the authorities would use to compensate a victim of an offence where a court presiding over the matter has ordered that the victim, or person acting on behalf of the victim, be compensated.
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The regulations also show that funds approved for disbursement by the minister may be disbursed by the authority to the recipient in tranches.
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“Secretary to the Treasury and at least two other signatories shall authorise any payment of funds out of the fund. Where there are no adequate signatories to the account due to the prolonged absence of the designated signatories, the minister may appoint another signatory, in writing,” the regulations read.
The Financial Intelligence Authority (FIA) has since said, considering that the government, through the minister, has signed the regulations, the authorities were set for rollout.
“The regulations now enable [the] utilisation of money in the Confiscation Fund account, especially the portion that constitutes fully forfeited money to the government which [sic]is around 28 percent. The forfeited funds deposited into the account have never been withdrawn,” the FIA said in a press statement issued on Monday.
Section 128 of the Financial Crimes Act (FCA) establishes the Confiscation Fund, which comprises funds and property confiscated to the government, whether under civil or criminal processes, funds or property subject to a preservation order and any other funds or property lawfully payable
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The fund is administered by FIA on behalf of the Minister of Finance, Economic Planning and Decentralisation.
According to FIA, the funds come from various sources such as the Anti-Corruption Bureau, Malawi Police Service, FIA, the Reserve Bank of Malawi and court judgements in relation to financial crimes.
Funds in the fund are mainly a result of preservation orders and forfeiture orders granted by the courts.
“Since 2022, the fund also contains the lowest portion of money realised by the Malawi Police Service through sale of merchandise in containers during the service’s operation aimed at driving refugees from various locations in Lilongwe to Dzaleka Camp [in Dowa District]. The larger portion of the fund is from preserved money,” it says.
Commenting on the development, economic analyst Velli Nyirongo said the issuance of the regulations was an important step in strengthening the country’s fight against financial crime.
“With the legal framework now in place, the Financial Intelligence Authority can begin managing and utilising these resources in a transparent and accountable manner. From an economic perspective, this development has the potential to ease pressure on public finances,” Nyirongo said.
The fund currently holds about K16 billion.
