Regulatory Alerts2019-01-24
Financial Services (Risk and Governance Requirements for Banks and Bank Holding Companies) Directive, 2018
Issued by the Registrar of Financial Institutions in Malawi under the Financial Services Act, this directive establishes mandatory risk and governance standards for all banks and bank holding companies operating in the jurisdiction. It requires institutions to maintain board compositions with a majority of independent or non-executive directors, establish dedicated audit, risk management, credit review, and remuneration committees, and implement robust internal audit and risk management functions reporting directly to the board. Non-compliance triggers strict enforcement mechanisms, including monetary penalties of up to K50 million for institutions and K10 million for senior officials, alongside potential administrative sanctions and account debiting by the Reserve Bank of Malawi.