Regulatory Alerts2018-01-01
Financial Services (Fit and Proper Requirements for Shareholders, Directors and Senior Management Officials of Banks) Directive 2018
The Registrar of Financial Institutions in Malawi issued this Directive to establish comprehensive fit and proper test standards for shareholders, directors, and senior management officials of banks and bank holding companies. It mandates prior Registrar approval for new or changing shareholders and board members, while detailing strict eligibility criteria regarding bankruptcy, convictions, conflicts of interest, residency limits for foreign executives, and specific professional qualifications. The Directive further empowers the Registrar to enforce compliance through monetary penalties of up to fifty million Kwacha for institutions and ten million Kwacha for individuals, alongside administrative directions that replace the previous 2014 regulations.