Govt to step up crackdown on financial crime as Malawi loses K240bn in illegal foreign exchange externalisation

State is pursuing 10 cases of money externalization on the courts after the government lost  $394. 60  (about K240 billion) in criminal externalisation in the past three years.

Kabambe said they will collaborate in intelligence sharing, investigation and prosecution of all financial crime

Institutions join hands in fighting financial crimes

Reserve Bank of Malawi governor Dalitso Kabambe said this has prompted the bank to partner with seven other government agencies to fight the criminals who externalize the money illegally from unsupported  foreign exchange  transactions  remitted without imports being  returned into the country  to various countries.

“The government is doing all it can to stop this but criminals have their own ways of beating the system. That was the problem in the past,” said Kabambe.

He said the coming in of technology is now boosting the fight against illegal externalization of the money.

“For example, MRA (Malawi Revenue Authority) is now using the automated system which help them a lot,” he said.

Other government agencies in the fight against illegal externalization of money include the Malawi Police Service, Office of the Director of Public Prosecutions (DPP), the Anti-Corruption Bureau (ACB), Malawi Revenue Authority (MRA), Immigration Department, National Intelligence Service (NIS), Financial Intelligence Authority (FIA) and the Reserve Bank of Malawi (RBM).

“Under the MOU, the taskforce will ensure that every dollar made from the country’s exports is retained in the country and that every remittance is in respect of payment for bonafide offshore payment,” he said.

Kabambe said under this MOU, eight institutions shall collaborate in intelligence sharing, investigations and prosecution of all financial crimes.

“No case shall be left out. As such, all perpetrators are being duly warned to stop these malpractices lest the long arm of the law will catch up with them and crash them,” he said.

Kabambe said the importance of foreign exchange reserves in any economy cannot be over emphasised adding that foreign exchange reserves play a critical role in satisfying a nation’s strategic imports demand.

Inspector General of Police, Rodney Jose expressed commitment that police will not condone this malpractice and will take action on any person involved be it police officers.

Chief Immigration Officer, Masauko Nedi hailed the MOU saying it would enhance information sharing, investigation and prosecution.

Recently, anti-money laundering expert Jai Banda, who is also a private practice lawyer, called for adequate coordination and intelligence exchange between financial agencies on suspicious transactions.

“Potential investors should be subjected to screening process that they have no criminal history while non-Malawians should be encouraged to invest in Malawi so that money is not taken out,” he said.

Cases of foreign exchange externalisation has been on the rise in the country.

 

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Achiswe
Guest

You can’t expect a corrupt government to tackle and root out corruption. The only way to fight corruption is to get rid of the corrupt government.

Hama
Guest
Hama

Theworst central bank i have ever seen. youpretend doing something you know for sure you are not. How do you approval foreign payments without original bill of entry?

Charlie Hebdo
Guest
Charlie Hebdo

How can we crack down on illegal externalisation of forex when a whole minister of finance gives false testimony as to why George Chaponda was found with huge amounts of foreign currency? Does this look like a government that is ready to fight the vice. These government agencies know the cause of the problem, but choose to circle around it instead of taking it head on.

Kingmfumu
Guest
Kingmfumu

And then, in the Nation of today, 13/02/2019, it is reported on page 2, that “the Lilongwe Chief Resident Magistrate’s Court sentenced to 14 months an Indian for being found in possession of $622,820, €15,860, and £2,015 (a total of MWK493,700,000) without supporting documentation.”

14 months, imprisonment, really? This 14 months is not a deterrent to these hard core criminals. Let us be serious, for a change. Malawi, wake up from your slumber.

Karim Mbava ya Chimwenye.
Guest

All these agencies named here are run by croocks. Mimba zili tolo tolo. I think time to give MCP A CHANCE

Tiyeseni Phiri
Guest
Tiyeseni Phiri

Akuti bokosi la maliro likatuluka nyumba silibwerera! MCP inatuluka kale-kale. Zoti ingabwerere mboma zinaiwalika.

Mussa
Guest
Mussa

Shameful to hear such words like ‘government stepping up cracking down of……’ Money laundering and illegal externalization of foreign currency is a serious kind of organized crime the government should be aware of. It only takes patriotic leaders who have a will to develop their country to formulate and enact sound and strong laws to restrict this kind of nuisance. The problem is that those that we elect to represent us in the government are self centered, opportunistic and mindless individuals who only think about enriching themselves at the expense of the poor majority of the country. Why do we… Read more »

Tiyeseni Phiri
Guest
Tiyeseni Phiri

flawed logic!

benjones
Guest

MALAWI GOVERNMENT know the culprits of this crime. They must not just pretend.

Tiyeseni Phiri
Guest
Tiyeseni Phiri

Who is the Malawi Government?

Orange Juice
Guest
Orange Juice

Don’t hoodwink us Reserve Bank! Most of the billions that are externalised “inappropriately ” are done so with the blessing of the RBM. You approve these criminal externalisation of funds.

Some well-known DPP top brass have got millions of ill-gotten dollars tucked away in South Africa, Dubai etc and those funds were externalised legitimately. Who gave the approvals if not the central bank?

Osamatinamizapo apa.

P Gondwe
Guest
P Gondwe

First of all flush out the Rwandese( who we call ma Burundi) masquerading as refugees. These people have been left to run big businesses in Malawi because most of them bribe law enforcers and are connected to corrupt politicians. These Rwandese are externising billions in forex to their countries and overseas. There involved in doing businesses all over the country and send money and invest back in Rwanda, Tanzania and Burundi . Do you think they send Malawi Kwacha to these countries? Off course not, they buy forex dubiously from corrupt commercial and reserve bank officials. There is now peace… Read more »

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