FATF status

Malawi is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Malawi was undertaken in 2024. According to that Evaluation, Malawi was deemed Compliant for 20 and Largely Compliant for 14 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Corruption is a significant issue in Malawi, affecting various sectors and hindering business operations despite the existence of anti-corruption laws and institutions like the Anti-Corruption Bureau (ACB). High-profile scandals and insufficient enforcement of regulations contribute to a culture of impunity, where public officials often evade accountability. Although recent amendments to the Corrupt Practices Act aim to expedite prosecution and enhance transparency, challenges remain in enforcing asset declarations and conflict of interest disclosures, leaving corruption as a major barrier to investment.

Malawi's economy is primarily driven by agriculture, which accounts for 22.1% of its GDP, and is supported by sectors such as services and industry. The government is focused on attracting foreign direct investment through initiatives in agriculture, tourism, and mining, aiming to significantly increase the mining sector's contribution to GDP. However, the economy faces challenges, including high inflation, inadequate infrastructure, and a scarcity of skilled labor, which hinder growth and investment opportunities.

Malawi's investment climate is characterized by a government eager to attract foreign direct investment, particularly in agriculture, tourism, and mining, as part of its "ATM strategy." However, challenges such as inadequate infrastructure, a scarcity of skilled labor, and recent amendments to land laws that negatively affect foreign ownership create a complex environment for investors. Despite these hurdles, the Malawi Investment and Trade Center (MITC) provides support to navigate regulations, and there are opportunities for public-private partnerships in various sectors.