RBM warns over illegal foreign exchange trading

Reserve Bank of Malawi says it will not tolerate illegal foreign currency trading, forex externalisation, transfer pricing manipulation and money laundering in the country.

Kabambe: We will not tolerate the malpractice

Reserve Bank of Malawi Governor Dalitso Kabambe made the remarks at a press a briefing in Lilongwe.

Speaking with reporters, Kabambe pointed out Lilongwe, Blantyre, Zomba, and Mzuzu as some of the areas that have an increase of unlicenced persons who illegally openly sell foreign exchange known as “forex black market” to the general public.

He added that the practice is unlawful and transactions pertaining to such practices are illegal and people carrying such transactions are supposed to be traced.

The governor went on to say that several individuals who obtained foreign currency from banks and foreign exchange bureaus masquerading as travellers are also answering charges of obtaining foreign currency for one reason and using it for another.

“Investigations and transfer pricing audits regularly carried out by the Malawi Revenue Authority have revealed that an amount equivalent to U$ 394.60 Million translating to approximately MK239.27 billion is suspected to have been illegally externalised through transfer pricing by several multinational companies operating in Malawi,” he explained

According to Kabambe, Malawi just like any other African economy needs to build enough foreign exchange reserves to meet its strategic imports which include medicines, Fertiliser and petroleum products.

Meanwhile, the Malawi Police Service, Director of Public Prosecutions, Anti-Corruption Bureau, Financial Intelligence Authority, Malawi Revenue Authority, Immigration Department, National Intelligence Service and Reserve Bank of Malawi have agreed to join hands to eliminate the criminal acts.