Malawi Country Summary

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.

Malawi faces significant challenges related to crime and corruption, with widespread issues such as bribery, fraud, and human trafficking. Despite the presence of an Anti-Corruption Bureau and various civil society organizations working to combat these issues, enforcement remains weak, and high-profile corruption cases often go unpunished, undermining public trust and resilience against crime.

Malawi's economy is characterized by a strong focus on attracting foreign direct investment, particularly in agriculture, tourism, mining, and manufacturing, as outlined in the government's "ATM and M strategy." Despite its rich natural resources and potential for growth in various sectors, including high-value minerals and tourism, the country faces significant challenges such as inadequate infrastructure, high inflation, and a scarcity of skilled labor, which hinder business operations. The investment climate is further complicated by recent amendments to land laws that restrict foreign ownership, alongside a slow legal system, although the Malawi Investment and Trade Center (MITC) provides support to help navigate these complexities.