EXCHANGE CONTROL

CHAPTER 45:01
EXCHANGE CONTROL

ARRANGEMENT OF SECTIONS

    SECTION

    1.    Short title

    2.    Interpretation

    3.    Regulations

    4.    Evidence and presumption

    5.    Financial provision

    6.    Application to the Government

17 of 1984
G.N. 84/1984
79/1985

    An Act to provide for exchange control and for matters incidental thereto, and to repeal the Exchange Control Act.

1.    Short title

    This Act may be cited as the Exchange Control Act.

2.    Interpretation

    (1) In this Act, unless the context otherwise requires—

    ‘‘bullion’’ means gold and includes any metal or coins declared under subsection (2) to be bullion for the purposes of this Act;

    ‘‘currency’’ includes coins, currency notes, drafts, travellers’ cheques, letters of credit, bills of exchange and promissory notes;

    ‘‘foreign currency’’ means any currency that is not, or is payable or expressed otherwise than in, Malawi currency;

    ‘‘foreign exchange’’ means foreign currency and foreign securities;

    ‘‘foreign securities’’ includes—

    (a)    any securities the principal of or interest from which is repayable or payable in any country other than Malawi or in a foreign currency;

    (b)    any securities in respect of which the funds necessary for the repayment of the principal or the payment of the interest are provided from any country other than Malawi;

    (c)    any securities that are registered outside Malawi;

    (d)    any security, debt or right which may be prescribed under section 3 for the purposes of this definition;

    ‘‘gold’’ means gold coin or gold bullion;

    ‘‘Malawi currency’’ means any currency that is, or is payable or expressed in currency that is, legal tender in Malawi;

    ‘‘the Regulations’’ means regulations made under section 3;

    ‘‘securities’’ includes stocks, shares, bonds, debentures, debenture stock, unsecured notes transferable or negotiable deposits, treasury bills, units or sub-units of a unit trust and policies of life or endowment assurance, and also includes deposit receipts in respect of the deposit of any such securities and documents of title to any such securities.

    (2) The Minister may, by Order published in the Gazette, declare any metal or coins to be bullion for the purposes of the definition of that word in subsection (1).

3.    Regulations

    (1) The Minister may make regulations for the purpose of the control of foreign exchange, bullion and Malawi currency.

    (2) In particular and without limiting the generality of sub-section (1), the Regulations may relate to—

    (a)    the powers, rights, duties and responsibilities of authorized dealers in bullion or foreign exchange and the rates at which they may enter into transactions in foreign exchange or bullion;

    (b)    the buying, selling, borrowing, lending or exchange of foreign currency or bullion;

    (c)    any dealing or transaction having the effect of a purchase, sale, borrowing, loan, or exchange of foreign currency or bullion;

    (d)    the taking of or sending out of Malawi, Malawi Currency, foreign currency or bullion;

    (e)    transactions in Malawi Currency with or on behalf of persons resident outside Malawi;

    (f)    a requirement that any person who has power to sell, or to procure the sale of, any foreign currency or bullion, shall sell or procure the sale of the currency or bullion in accordance with the Regulations;

    (g)    the taking, sending, transmission or transfer out of Malawi of securities prescribed in the Regulations, and other dealings with or transactions in securities so prescribed;

    (h)    the imposition by the Minister of restrictions and conditions on authorized dealers in bullion or foreign exchange;

    (i)    the imposition of any prohibition, restriction, or requirement on the import or export of moveable property;

    (j)    the appointment of persons to perform any prescribed functions for the purposes of the Regulations.

    (3) The Regulations may—

    (a)    regulate or prohibit the carrying on of any dealings or transactions or the doing of any act;

    (b)    constitute offences and prescribe penalties therefor, in the case of an individual, not exceeding a fine of K100,000 and imprisonment for five years, and in the case of a body corporate a fine without limit;

    (c)    provide for the prosecution and punishment of the officers of bodies corporate convicted of an offence against the Regulations;

    (d)    empower a court to order the forfeiture of Malawi Currency, foreign currency, securities, bullion or goods in respect of which an offence has been committed against the Regulations;

    (e)    empower a court to order the sale to, or the vesting in, the Administrator General, of Malawi currency, foreign currency, securities, bullion or property, retained, obtained or dealt with in contravention of the Regulations.

    (4) The Regulations may create offences with respect to acts done, or dealings or transactions carried out, in or outside Malawi or partly in and partly outside Malawi.

    (5) The power under this section to make the…