Forum for National Development (FND) has written the Reserve Bank of Malawi (RBM) to investigate banks linked to 338 ATM cards which were confiscated from five women over money laundering, forex externalization and fraud.
Last week, Fiscal Police at Kamuzu International Airport in Lilongwe arrested five women for Money Laundering after being found in possession of 338 ATM cards just after their arrival on a flight from Dubai.
Malawi Police national spokesperson Peter Kalaya identified the suspects as Sellina Mkandawire, 39, Fatima Dziko, 35, Diness Mphande, 66, Hanifa Osman, 33 and Angella Mphande, 36 who all appeared in court on Friday and were been released on bail.
Following the matter FND has penned the central bank through the Governor and has copied the letter to the Head of Fiscal Department at Malawi Police Service, Financial Intelligence Authority, Bankers Association of Malawi and to the dean of diplomatic mission.
The letter seen by this publication dated 12th June, 2023, signed by FND national coordinator Fryson Chodzi, asks the central bank and the other authorities to investigate all the banks whose ATM cards were confiscated from the five suspects.
The organisation says it is a serious lapse and an offence by these banks that only five individuals would possess 338 ATM cards when the banks are supposed to conduct a Know Your Customer (KYC) on opening bank accounts and issuing ATM cards.
“We write you as the commercial banks and financial transactions regulator in the country, to probe and investigate the banks that issued the 338 cards that were confiscated upon arresting the 5 women at Lilongwe International Airport.
“We have noted media reports making rounds on this matter and further we have received allegations pertaining to this operation, which raises serious matters of money laundering, fraud and forex externalization,” reads part of the letter to RBM.
The letter further tell the banks whose cards are involved in the syndicate to seriously explain how the cards were loaded with thousands of United States Dollars which they described as a very serious offence that needs to be given all necessary attention.
The NGO further states that these kind of cases have a serious repercussion on the entire economy of Malawi, as the country is signatory to international laws on money laundering and combating the financial terrorism that makes it obligated to curb such kind of actions.
“Failure to deal with this matter will compel us to report to international institutions as money laundering is a serious crime worldwide and slowly Malawi is degenerating into a money laundering hub, as we raised these matters with your office before,” reads another part of the letter.
FND has also questioned RBM’s silence on the matter which they say makes one to start believing social media reports alleging that staff at the central bank are also involved in the syndicate.
“Sadly, according to the media reports, it is further alleged that staff at a Reserve Bank are also involved which seriously puts the integrity of the financial institutions in Malawi. The silence on the part of RBM as a regulator is mind baffling and clearly shows of an institution that is compromised in its work,”
Meanwhile, some economic experts including Betchani Tcheleni, suspects there are some more ‘big fishes’ in the syndicate saying the ladies could not gain courage on their own to commit the offences.
“So, some Malawians found a job of externalising forex to other countries on behalf of some unscrupulous people in the country. Too many questions,” goes part of Tcheleni’s Facebook post.
In the same Facebook post, the economist expressed interest to join the case as one of friends of the court.
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