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 pervasive issue in Malawi, affecting all levels of government and various sectors of the economy, with high-profile scandals occurring under multiple presidential administrations. Although Malawi has established legal frameworks to combat corruption, such as the Corrupt Practices Act and the Anti-Corruption Bureau (ACB), enforcement remains weak and often politically influenced, leading to a culture of impunity. Despite some progress, including amendments to expedite corruption prosecutions, the lack of compliance with asset declarations and conflict of interest disclosures continues to hinder effective anti-corruption efforts.

Malawi's economy is primarily focused on agriculture, which contributes 22.1% to its GDP, and is supported by the government's "ATM strategy" aimed at enhancing productivity in agriculture, tourism, and mining. Despite having significant mineral deposits and a growing tourism sector, the country faces challenges such as inadequate infrastructure, high inflation, and a scarcity of skilled labor, which hinder economic growth and investment opportunities.

Malawi's investment climate is characterized by the government's eagerness to attract foreign direct investment, particularly in agriculture, tourism, and mining, as part of its "ATM strategy." While there are significant opportunities, challenges such as inadequate infrastructure, a scarcity of skilled labor, and recent amendments to land laws that negatively impact foreign ownership create a complex environment for investors. Additionally, the Malawi Investment and Trade Center (MITC) plays a crucial role in assisting investors to navigate the regulatory landscape.