Reserve Bank of Malawi brings into force export proceeds repatriation directive with 120-day deadline and 150% penalties

The Reserve Bank of Malawi has issued the Foreign Exchange (Repatriation of Export Proceeds) Directive, 2025, which commenced on 1 August 2025, requiring exporters of goods and services to repatriate export proceeds to Malawi in the exporter’s registered name within 120 days from the date of exportation. The Bank also instructed exporters with export proceeds unreconciled beyond 120 days to reconcile them within 15 days from the date of the notice, failing which it will take legal action. Where an exporter cannot meet the 120-day deadline for valid reasons, the exporter must notify its authorised dealer bank and apply for an extension through that bank to the Reserve Bank of Malawi, setting out the reasons for the delay and the extension period requested. Under the Foreign Exchange Act, 2025, failure to repatriate within 120 days attracts a monetary penalty equal to 150% of the value of the goods or services whose proceeds are not repatriated and may lead to deregistration of the exporter; failure or refusal to comply with a monetary penalty is an offence punishable on conviction by a fine of MWK 200,000,000 and imprisonment for up to seven years, and unpaid penalties may be recovered as a civil debt if not paid within 21 days from service of the penalty notice.