The Reserve Bank of Malawi issued a public notice citing a rise in illegal foreign currency transactions and reminding the public that buying or selling foreign currency in Malawi must be done through an authorized dealer under the Foreign Exchange Act, No. 18 of 2025. It stated that foreign exchange dealings in informal physical markets or on online platforms, including those targeting the diaspora community, are illegal and may attract sanctions under the Act. The notice highlighted that it is an offence for anyone who is not an authorized dealer to buy, sell, borrow, lend or exchange foreign currency with parties other than the central bank or an authorized dealer, or to facilitate transfers of funds to or from a foreign country without the Reserve Bank’s permission. It also flagged offences for aiding or abetting illegal foreign currency transactions, assisting unauthorized cross-border fund transfers, or using names or descriptions that imply the person is an authorized dealer, and urged the public to report suspicious activity to the Reserve Bank of Malawi, the Financial Intelligence Authority, the Malawi Police Services or other law enforcement agencies.
Reserve Bank of Malawi 2025-08-08
Reserve Bank of Malawi warns that informal and online foreign currency trading is illegal and must be conducted through authorized dealers
The Reserve Bank of Malawi warned against illegal foreign currency transactions, stating they must occur through authorized dealers under the Foreign Exchange Act, No. 18 of 2025. It highlighted that unauthorized dealings, including online and targeting the diaspora, are illegal and subject to sanctions. The notice urged the public to report suspicious activities to authorities.