Regulatory Alerts2018-01-01
Financial Services (Transactions of Banks with Related Parties) Directive 2018
The Registrar of Financial Services in Malawi issued this directive to regulate banking transactions with insiders and related parties under the Financial Services Act. It mandates strict adherence to arms’ length pricing, imposes board oversight responsibilities, and requires comprehensive disclosures and record-keeping for all credit facilities and contingent liabilities involving these entities. The framework further defines core capital calculations, eligible guarantees, and exposure limits while authorizing monetary penalties for non-compliance.
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