Regulatory Alerts2011-01-01
Financial Cooperatives Act 2011
The Parliament of Malawi enacted the Financial Cooperatives Act 2011 to regulate and supervise savings and credit cooperative societies (SACCOs) by establishing comprehensive licensing, governance, and operational frameworks. The legislation mandates that SACCOs obtain and maintain valid licences to operate, adhere to strict capital and liquid asset requirements, and restrict employee directorships while ensuring transparent internal controls. It further authorizes primary and secondary SACCOs to offer diverse financial services, establishes a Deposit Guarantee Fund to protect member savings, and grants the Registrar of Cooperatives broad supervisory powers to enforce compliance and manage remedial actions.
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