Chiweto

Malawians in the diaspora, the Reserve Bank of Malawi has come up with favourable conditions for opening foreign currency denominated accounts. See the attached advert from Malawi News. I took time to transcribe it to make it easier to read. -- THE RESERVE BANK OF MALAWI PRESS RELEASE UPDATE ON CONDITIONS APPLYING TO DIASPORA FOREIGN CURRENCY DENOMINATED ACCOUNTS The Reserve Bank of Malawi (“the Bank”) wishes to inform and sensitize the general public about the applicable conditions governing the newly introduced Diaspora Foreign Currency Denominated Accounts (FCDAs). These accounts have been created to ensure that Malawians living abroad can enjoy convenient banking services in Malawi under favourable conditions, thereby incentivizing diaspora remittances. The following are the key points to note: Definition and Eligibility Diaspora FCDAs are foreign currency accounts held in Malawi by Malawian citizens residing outside the country. These accounts must be funded with money that does not originate from Malawi and is not derived from export proceeds. Diaspora refers to Malawian citizens who have lived outside Malawi for more than 12 consecutive months, whether for employment, business, education, or any other purpose. Authorized Dealer Banks (ADBs) may open a Diaspora FCDA for a Malawian citizen who provides authentic documentation proving that they have relocated or will relocate outside Malawi for at least 12 consecutive months. Documentation Requirements Banks shall require any of the following before opening a Diaspora FCDA: Employment offer letter for a period exceeding 12 months, plus acceptance of the offer. Valid work or residency permits. Admission letter from an educational institution confirming enrolment for a period of over 12 months. Any additional documentation that, in the bank’s opinion, clearly demonstrates that the applicant will reside outside Malawi for more than 12 consecutive months. Favourable Conditions Provided by ADBs Subject to compliance with Foreign Exchange legislation and other regulatory requirements, ADBs offer favourable conditions for operating Diaspora FCDAs, including: Reduced paperwork for account opening and transactions. Simplified processes for sending money locally and internationally. Ability to apply for account opening online. Access to online banking platforms. Issuance of debit cards. Assignment of a dedicated diaspora private banker. Treatment of Funds Upon Return Where a diaspora account holder returns to Malawi temporarily or permanently, ADBs will continue to treat inflows from the individual’s diaspora engagement as diaspora funds, provided the account holder submits proof of such earnings. Conditions Applicable to All Diaspora FCDAs Cross-border remittances and payments from Diaspora FCDAs are not subject to Exchange Control requirements. Account holders may make hard currency withdrawals for any purpose once per calendar month, up to 50% of the account balance. Requests for hard currency withdrawals exceeding the 50% limit require prior approval from the Bank. Permitted FCDA Transfers The following transfers are allowed: From a Diaspora FCDA to another Diaspora FCDA. From a Diaspora FCDA to a Non-Resident FCDA. From a Diaspora FCDA to a Resident FCDA, including transfers to foreign exchange bureau FCDAs for Malawi Kwacha equivalent cash or bank transfer. The Bank advises all interested individuals to contact their respective bankers for more detailed information on Diaspora Foreign Currency Denominated Accounts. The Bank remains committed to fostering an environment that promotes and incentivizes diaspora remittances. Henry H. Mathanga DEPUTY GOVERNOR, ECONOMICS & REGULATION 30 January 2026