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Malawi to set Financial Intelligence Authority

 

Malawi is set to establish a National Financial Intelligence Authority in a bid to effectively prevent, investigate and combat financial-related crimes in the country.

According to the proposed law seeking to establish the authority which was gazetted on December 5 2016 as seen by The Nation, Bill Number 35 of 2016, Financial Crimes Act, has 11 components, among them the establishment of the authority with the mandate to trace, identify, track, freeze and seize or confiscate proceeds of crimes.

The authority, according to the Bill, is expected to create a more robust legislative response to combat financial crimes.

Legislators transacting business: They are expected to debate the proposed new law

Reads in part the Bill: “The Bill seeks [provide a legal instrument] to better prevent, investigate and combat financial and related or consequential crimes; to enable the tracing, identification, tracking, freezing, seizure or confiscation of proceeds of crimes; and to provide for connected and incidental matters.”

If passed, the Bill will see Malawi having two institutions focusing on investigating financial crimes as the country already has the Financial Intelligence Unit (FIU) established under the Money Laundering, Proceeds of Serious Crimes and Terrorist Financing Act.

Commenting on the proposal, private practice lawyer Jai Banda, one of the key architects of the Money Laundering, Proceeds of Serious Crimes and Terrorist Financing Act, said it is his wish that the authority will have more powers like the Anti-Corruption Bureau (ACB) that is able to prosecute.

In the proposed Bill, the head of the authority will be appointed by the President and that he/she will be reporting directly to minister of finance.

In 2006, under Money Laundering, Proceeds of Serious Crimes and Terrorist Financing Act, government created the FIU with the mandate to receive, request and analyse suspicious transaction reports from financial institutions. n

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