Regulatory Oversight of Foreign Exchange Bureaus in Malawi

I conducted a site visit to Lilongwe, Malawi in Southeast Africa in July 2010 to work with the Financial Intelligence Unit (FIU) of the Reserve Bank of Malawi (RBM). The FIU was established in Malawi by enactment of “The Money Laundering, Proceeds of Serious Crime and Terrorist Financing Act, (No. 11 of 2006)” (ML Act). The purpose of my visit was to provide guidance to the FIU during their conduct of the first-ever onsite examinations of foreign exchange bureaus (FEB). Since Malawi enacted the ML Act in 2006, implementation of the law’s provisions have been proceeding during the ensuing four year time period. As of the end of 2007, there were 10 commercial banks and 23 FEBs in Malawi that the FIU provided anti-money laundering (AML) regulatory oversight for. The regulatory oversight and supervision of FEBs has been cited as a concern in the past by the Eastern and Southern Africa Money Laundering Group (ESAAMLG)...(more)...