Regulatory Alerts2018-01-01
Microcredit Agency Directive 2018
Issued by the Registrar of Financial Institutions under Malawi’s Microfinance Act, this Directive establishes comprehensive registration, licensing, and operating standards for all microcredit agencies. It mandates strict product restrictions, caps insider loans at ten percent of the portfolio, requires reducing-balance interest calculations, and enforces monthly credit bureau reporting alongside quarterly operational and fraud disclosures. The framework further codifies customer due diligence, complaint handling, and prepayment rules while imposing daily monetary penalties up to MK5 million for regulatory non-compliance.
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