LILONGWE-(MaraviPost)-Malawi Parliament has passed Bill No. 19 of 2025, which abolishes the outdated Exchange Control Act of 1984 and replaces it with a fresh Foreign Exchange Act, resulting in government control being replaced by management of foreign exchange transactions.
The Bill’s aim is to set standards for penalties for crimes in the financial industry, promoting consistency and clarity.
Presenting the Bill in Parliament on Monday, Finance and Economic Affairs Minister, Simplex Chithyola Banda said the law will enhances Reserve Bank of Malawi’s (RBM) ability to implement and enforce laws while keeping the Minister responsible for foreign exchange policies.
According to him, the bill will incorporate measures to improve the Reserve Bank’s monitoring of cross-border financial flows and create a new sanctions program that includes administrative penalties, forfeiture, and other penalties.
In his response, Vice Chairperson for Budget and Finance committee Finance,Ismael Nkumba said after the Budget Committee carefully reviewed Bill No. 19 of 2025: the Foreign Exchange Bill, commends the proposed amendments as timely and necessary to strengthen the Reserve Bank of Malawi’s oversight and regulatory capacity in foreign exchange matters.
Nkumba said the Committee believes that the measures outlined will enhance the country’s macroeconomic stability, safeguard foreign exchange reserves, and bolster investor confidence.
He therefore said the Committee urges the House to support the Bill, subject to the recommendations made, to ensure its effective implementation and alignment with national economic priorities.