Banks move to bust money laundering
15/May/2009

The Bankers Association of Malawi (Bam) says it has moved to ease technicalities customers go through as banks strive to comply with the Money Laundering and Proceeds of Serious Crimes Act. Among other objectives the act aims at addressing flaws in the local monetary system which was prone to accessing financial proceeds from criminal activities. In an interview, Former Bam Executive Director Fanuel Kumdana said the banking sector would achieve this by ensuring that all commercial banks seek same information from clients. Kumdana said clients had come to find it frustrating when each bank requests information different from the other all in the name of fighting money laundering. He said commercial banks were now compiling comprehensive details of their clients and that making the requirement uniform, would ease the burden on both the banks and customers.

"Most people did not know of this arrangement and we would like to increase sensitisation about the law and on the other hand we would like our members (commercial banks) to comply with the law," said Kumdana. He said the banks would request all its customers to provide information such as contact details, identification and source of funds. "All old and new customers will be required to provide the information requested by the banks and these details would be similar in all banks so people should not be reluctant to oblige as this is very legal," said Kumdana.

The law was enacted in August 2006 and obliges banks to keep more comprehensive details on its customers. "Some of the details that will be requested will be customer's registration certification in the case of business entities, customer utility bills as proof of residence," the statement reads in part. Bam, a grouping of commercial banks and discount houses, was established in 1995 and it has other financial institutions licensed under the Banking Act 1989 as its members. The association currently consists of 13 members that are all engaged in the provision of banking facilities and other financial services in the country. In the last ten years of its existence, the association has played a crucial role in the activities of the National Payments Council (NFC) which have culminated into the implementation of vast payment system reforms in the country.

<< Back