Attorney General Thabo Chakaka Nyirenda has warned commercial banks and both local and international non-governmental organisations (NGOs) operating in Malawi to stop engaging in illicit foreign exchange transactions.
In a letter addressed to the Bankers Association of Malawi (BAM) and the NGO Regulatory Authority (NGORA), Nyirenda cautioned that failure to comply will lead to legal consequences.
He alleged that some banks and NGOs are colluding to sell foreign exchange from their foreign currency denominated accounts to individuals or entities instead of authorised dealer banks.
The Attorney General, who claims to have evidence of this malpractice, said that such actions deprive the government of forex and amount to economic sabotage.
Nyirenda also urged the Reserve Bank of Malawi to take action against the banks and their managers, and for NGORA to address the conduct of NGOs and their financial controllers involved in these illegal trades.
Both BAM and NGORA are yet to comment.
