Malawi has embarked on its third National Risk Assessment (NRA) on money laundering, terrorism financing and proliferation financing; a process which is expected to take three months to complete.
The assessment aims to review the money laundering, terrorism financing and proliferation financing risks in the country through a comprehensive analysis. This will then lead to a review of the 2018 NRA and mitigating actions to address the vulnerabilities. It will also assist in allocating resources for the fight against money laundering, terrorism financing and proliferation financing more effectively and efficiently, while meeting international standards.
Speaking when he addressed stakeholders, who met in Mponela last week to kick-off the exercise, Deputy Director General of the Financial Intelligence Authority, Mr. Vincent Chipeta, said an understanding of the money laundering, terrorism financing and proliferation financing risks allows the country to apply anti-money laundering and combating the financing of terrorism measures that correspond to the level of risk.
"Money laundering is a serious global problem. At the global level, the International Monetary Fund (IMF) estimates the extent of money laundering to be at 2-5 per cent of global Gross Domestic Product (GDP).
"The Financial Action Task Force (FATF) has, therefore, put a requirement for each country to identify, assess and understand the money laundering, terrorism financing and proliferation financing risks, which each country faces," he said.
Basel Institute on Governance Financial Data Analyst, Ash Leber, said the NRA must be a living document so that Malawi can effectively address new money laundering, terrorism financing and proliferation financing threats. Basel Institute on Governance is providing financial and technical support towards the NRA.
Financial Intelligence Authority is the Secretariat coordinating this third NRA exercise to update the money laundering, terrorism financing and proliferation financing risks 5 years after the last NRA was conducted in 2018. The first NRA was done in 2013.
The risk assessment process itself is being undertaken by 41 government and private sector institutions using the World Bank Group’s country self-assessment tool. The institutions include Reserve Bank of Malawi, Anti-Corruption Bureau, Malawi Revenue Authority, Malawi Police Service, High Court of Malawi, Institute of Chartered Accountants in Malawi, NGO Regulatory Authority, Malawi Stock Exchange, Malawi Law Society, Registrar General and Ministries of Finance, Defence, Homeland Security, Justice and Tourism, among others.
IN PROGRESS: The National Risk Assessment
