Malawi Parliament on Friday, March 18, 2022 passed Deposit insurance Bill which is aiming at regulating financial institutions and safeguarding depositors money across the country.
Finance Minister Sosten Gwengwe told The Maravi Post after the passing the bill that law will address challenges depositors are facing amid corruption in financial institutions.
Gwengwe said the the new law will also ease pressure which government was encountering when financial institutions are down.
Legal affairs committee’s chairperson Peter Dimba said the law is milestone of making sure that financial institutions are not tampering depositors money.
Dimba said the gives stiffer penalties to the financial institutions found against the law.
He said the financial institution that will fail to protect clients deposits will be required to pay 10 million fine.
This comes at a time when Malawi Electoral Commission (MEC) lost their deposits when alliance capital was closed.▪️