Regulatory Alerts2016-01-01
Financial Services (Customer Due Diligence Requirements for Banks, Leasing Companies or Discount Houses) Directive 2016
The Registrar of Financial Institutions issued this directive under the Financial Services Act to mandate banks, leasing companies, and discount houses in Malawi to implement comprehensive customer due diligence frameworks. The directive requires these institutions to establish risk-based customer acceptance policies, verify identities for both face-to-face and remote customers, conduct ongoing transaction monitoring, and ensure continuous staff training. To enforce compliance, the Registrar may impose monetary penalties of up to K50 million on institutions and K10 million on senior management, with enforcement actions processed through the Reserve Bank of Malawi.
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