Finance Minister Joseph Mwanamvekha has warned financial institutions, including money transfer operators, against facilitating money laundering and illegal transactions.
He said the malpractice was crippling the economy.
Speaking during the 2026-27 pre-budget consultation meeting in Blantyre on Wednesday, Mwanamvekha said the current administration would not tolerate such malpractices.
He said local banks and some money transfer operators were involved in illicit transactions.
“We know what you are doing and the illegal transaction and the money laundering that is taking place. I want to assure you that the authorities are on the ground. We know exactly who’s doing what.
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“We don’t want to have a situation where we are closing a bank just because it is facilitating money laundering and illegal transactions. It’s not in our [best] interest. So please, assist us to manage this economy,” Mwanamvekha said.
Bankers Association of Malawi Chief Executive Officer Lyness Nkungula shifted the blame to a few individuals within the banking system and not the entire system.
However, Nkungula said the association would engage with the authorities to flush out those involved in the malpractice and ensure that they are answerable to the crimes.
“The banks are highly regulated; so. they cannot take that risk. Otherwise, they [banks] could lose their certificates.
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“I’m also glad that the minister pointed out that he has some pointers and [that] he will have bilateral meetings with the different stakeholders just to iron this out,” Nkungula said.
