Over K300 million (about $750 000) has been recovered since the Financial Intelligence Unit (FIU) started working with the Malawi Revenue Authority (MRA) authorities said on Wednesday in Blantyre.
Speaking during the signing ceremony of a Memorandum of Understanding (MOU) between FIU and MRA, FIU acting director Atuweni Phiri said the agreement will strength the anti-money laundering and combating financing of terrorism.
“Those indulging in tax crimes try to avoid detection. Criminals devise techniques including using a number of financial institutions. The relationship between FIU and MRA will ensure that criminals who indulge in tax crimes and money laundering have nowhere to hide. The relationship between FIU and MRA is very instrumental in fighting financial crimes,” said Phiri.
Speaking at the signing of the pact, MRA commissioner general John Biziwick said his institution needs information from other stakeholders to maximise revenue collection.
“MRA is mandated to counteract tax evasion and fiscal fraud. We are aware of various forms of tax evasion such as smuggling, suppression of sales and under reporting of incomes. There is a lot of undetected flow of income into and out of the country which is untaxed. This is lost revenue that must be assessed collected and accounted for. FIU has the capacity to detect flow of income that is untaxed or not declared. MRA therefore stands greatly benefit from this partnership,” said Biziwick.
FIU was established in 2007 after the passing of the Money Laundering, Proceeds of Serious Crimes and Terrorist Financing Act in 2006.
FIU is responsible for receiving and analysing reports of suspicious transactions submitted by financial institutions.
Money laundering is the process of disguising proceeds of crime using financial intuitions to make the proceeds appear to have been derived from legitimate sources. Proceeds of crime include income form tax evasion, corruption, fraud, corruption, fraud, embezzlement, drug trafficking and human trafficking.
