Financial market players have welcomed the Reserve Bank of Malawi’s (RBM) foreign exchange regulation that audits online air ticket applications by institutions, calling it an effective oversight on foreign exchange dealings.
Among others, the regulation requires applicants to submit travel documents to their banks and that upon return of a trip, they must submit a copy of stamped passports for verification that the trip indeed took place.
Reads part of the regulation: “An applicant intending to apply for an air ticket online shall submit all necessary travel documentation to its bank, including a valid passport, Visa documentation (where applicable), travel itinerary and any other relevant documentation.
“An applicant shall, upon return from the travel, return a copy of the stamped passport to evidence the travel against the purchase of the ticket.”
The regulation further indicated that authorised dealer banks shall submit to the RBM periodic reports on all the online purchases processed as directed by the bank.”
In an interview yesterday, Financial Market Dealers Association secretary general James Mbingwa said the regulation applies to institutions with Foreign Currency Denominated Accounts only, as such, it is positive because initially such institutions were facing challenges.
He said: “This new regulation addresses the challenge that was there where institutions were failing to purchase air tickets for their staff official travel.
“You should note that the regulation is specific to institutional foreign currency account holders where they are drawing the forex from their accounts.
“This will, therefore, ease the challenges in purchasing air tickets by legitimate institutions that have their own foreign currency.”
In a separate interview, Bankers Association of Malawi chief executive officer Lyness Nkungula said the new requirements by RBM reflect a deliberate effort to tighten oversight and promote transparency in foreign exchange usage.
She said: “By mandating proof of payment and confirmation of travel, the regulation seeks to align forex allocations with actual economic activity and curb misuse.
“While the documentation may introduce additional steps for travellers and banks alike, it also reinforces accountability, particularly important in a context where forex reserves are strained.”
But Nkungula highlighted that the success of this regulation will rest on how efficiently the supporting systems are implemented, saying clear communication, streamlined processes, and collaboration between banks and travellers will be key to ensuring compliance without undue friction.
Meanwhile, National Advocacy Platform chairperson Benedicto Kondowe has said the regulation reflects RBM’s determination to close forex leakages and ensure accountability in how foreign currency is used.
