By Cathy Maulidi:
Parliament has passed the Financial Crimes Amendment Bill, which aims to strengthen the nation’s financial security and protection against various forms of financial misconduct.
Minister of Finance Simplex Chithyola Banda, who presented the bill in Parliament Friday, said that the bill addresses “deficiencies identified during the implementation of the Act.”
Specifically, he said the bill proposes to refine the definition of “competent authority” by adding new institutions such as the Malawi Gaming and Lotteries Authority, to the list.”
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“It also redefines ‘funds’ to align with the definition recommended by the Financial Action Task Force (FATF), an international organisation that establishes standards and policies to combat money laundering, terrorist financing, and other financial crimes,” Chithyola said.
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He further said the bill seeks to impose additional responsibilities on financial institutions licensed under the Financial Services Act (Cap. 44:05) to retain accurate originator and beneficiary information during electronic funds transfers.
“Furthermore, the bill aims to improve the use of the Confiscation Fund by expanding its application to include compensating direct victims of financial crimes, financing initiatives that enhance the investigation and prosecution of financial crimes and asset recovery,” he said.
“It also seeks to allocate resources to competent authorities for enhancing the efficiency of the criminal justice system, supporting law reform and policy development related to financial crimes, and any other purposes the Minister may determine to further the objectives of the Fund or to serve the public interest,” Chithyola said.
Gladys Ganda, Chairperson of the Budget and Finance Committee, said the bill would tackle the persistent problem of money laundering and other financial crimes in Malawi.
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“Financial crimes—ranging from money laundering and fraud to corruption and illicit financial flows—pose a significant risk to the economic stability and integrity of our nation. These crimes undermine investor confidence, compromise government revenues, and divert public resources away from essential services.
“Therefore, our Committee has given serious attention to this bill to ensure that it provides a robust legal mechanism for detecting, preventing, and prosecuting financial crimes,” Ganda said.
Spokesperson for the Democratic Progressive Party Noel Lipipa, said the bill has come at the right time, as the country is grappling with numerous financial crimes that have negatively impacted the economy.
Similarly, spokesperson for the United Democratic Front Ismail Mkumba, said the amendments were overdue.
