Malawi’s newly launched Financial Intelligence Unit says it hopes to get a legal mandate to investigate and prosecute in 2008 despite failing to get more authority in 2007.
The unit which was created under the August 2006 Money Laundering, Proceeds and Serious Crimes and Terrorists Financing Act is mandated to receive, request and analyse suspicious transaction reports from financial institutions in the country.
Legal Advisor for the Financial Intelligence Unit Atuweni Juwayeyi said lack of legal mandate for the unit to research and prosecute may lead to delay or sudden death of cases.
“Although the duty of the unit will be to determine whether there is money laundering or terrorist financing which will later be presented to other relevant investigative bodies, the unit has no jurisdiction to investigate and prosecute such cases and the reasons for this are political” she said.
Juwayeyi said the disadvantage to this arrangement is that if you leave the investigation and prosecution to other agencies the continuity and seriousness that could be applied on such matters could not be guaranteed.
Anti-money laundering law expert Jai Banda dismissed the fears expressed by Juwayeyi saying the system was deliberately designed as an intermediary or administrative model so that it reduces delays in justice delivery in the event that the investigating authorities are incompetent.
“It must also be appreciated that the Financial Intelligence Unit has powers under section 11 to request information from the prosecuting agencies on any issues being investigated,” he said.
Juwayeyi however commended the current setting which she said would help in shielding the Financial Intelligence Unit against witch hunting speculations.
Juwayeyi told Society of Accountants in Malawi to take up an advisory role in ensuring that its members are not involved in any suspicious dealings.
“Failure for the body to perform its duty diligently may result in a fine of K500, 000(US$3,571),” she said.
The Accountants were also advised to be extra careful when exercising their duties especially on the need to inform the Financial Intelligence Unit on any fishy transactions since failure to do so would result in a K100,000 fine or a two-year jail sentence.