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 misuse of public funds undermining governance and economic stability. While there are efforts from civil society and the government to combat these issues, including the establishment of an Anti-Corruption Bureau, the effectiveness of these initiatives is hampered by insufficient resources, political interference, and a weak legal framework, leaving the country vulnerable to various forms of organized crime, including human trafficking and illicit trade.

Malawi's economy is characterized by a strong focus on attracting foreign direct investment, particularly through its "ATM strategy," which emphasizes agriculture, tourism, and mining. The government aims to enhance agricultural productivity by establishing mega-farms and increasing mining's contribution to GDP from 1% to 20%, while also leveraging its natural resources to boost tourism. However, challenges such as inadequate infrastructure, a scarcity of skilled labor, and high inflation, compounded by political and economic uncertainties, hinder the investment climate, despite the government's commitment to regulatory reforms and the establishment of supportive institutions like the Malawi Investment and Trade Center.