The Reserve Bank of Malawi has clarified the conditions governing newly introduced Diaspora Foreign Currency Denominated Accounts, a facility designed to make banking in Malawi easier for citizens living abroad.
In a statement issued by the Bank, it said the accounts are intended to offer “convenient banking services in Malawi under favourable conditions,” while encouraging increased remittances from Malawians in the diaspora.
The accounts are available to Malawian citizens who have lived outside the country for more than 12 consecutive months, provided the funds deposited originate outside Malawi and are not linked to export proceeds.
Commercial banks are required to verify eligibility through documents such as long-term employment contracts, valid work or residence permits, or admission letters from foreign educational institutions.
Authorized Dealer Banks will offer incentives including reduced paperwork, online account opening, access to digital banking platforms, debit cards, and dedicated diaspora banking support.
The Bank noted that even when account holders return to Malawi, funds earned from diaspora activities will continue to be treated as diaspora funds upon proof of source.
Under the framework, cross-border payments from these accounts are exempt from exchange control requirements, with account holders allowed to withdraw up to 50 percent of their balance in hard currency once per month, subject to approval for higher amounts.
