Commercial Banks in Malawi will from next week April 10th 2012 stop encashment of third party cheques a development expert have attributed to skyrocketing numbers of fraudsters on the market.
The Bankers Association of Malawi (BAM) has said in its latest news release that all individuals who have been given cheques will need to deposit the cheques into their accounts.
“With effect from Tuesday 10th April, 2012, encashment of third party cheques will not be accepted,” says the release.
A third party cheque is a cheque made payable to any person other than the account holder.
“The only person who will be eligible to cash a cheque will be the owner of the cheque and the account only,” it reads in part.
Financial experts has attributed this to an increasing number of fraudsters who have several times connived with bank officials to cash cheques which led to loss of hundreds of million kwacha.
“By depositing the cheque, all legal traces will be fulfilled adequately and the issuers of the cheque acknowledge that he or she indeed issued such a cheque. This is purely to secure depositors from conmen,” said one expert.