Reserve Bank of Malawi introduces cross-border system

Post was last updated: February 26, 2019

By Sharon Chirwa:

The Reserve Bank of Malawi (RBM) is implementing a system for reporting data on cross-border financial transactions by institutions licensed to deal in foreign exchange.

This is according to statement which RBM governor, Dalitso Kabambe, has released.

The new system, dubbed Cross Border Foreign Exchange Reporting System (CFERS), will go live on March 1 2019.

CFERS will be in line with systems of banks, Malawi Revenue Authority and other financial institutions.

Cross border payment clients will be required to provide the necessary information before effecting the foreign exchange payment.

“In order to comply with the requirements of the system, individuals and organisations processing cross-border payments and receipts with banks, foreign exchange bureaux, money transfer business operators and tourist operators will be required to provide detailed information about the foreign exchange payment s and receipts”, reads part of the statement.

Foreign exchange receipt will also not be credited to the recipient’s account before the transaction is fully declared.

The central bank is also replacing the Foreign Exchange Statistical Database System with CFERS.

“With implementation of the CFERS, the CD1 form will be phased out since the system will interface with the system of Malawi Revenue Authority for extraction of data on exports and imports”, the statement reads.

The statement emphasises that exporters still have to repatriate export proceeds to Malawi within 180 days for the exportation date.

Let us know what you think of this update and remember to add us on our facebook and follow us on our twitter. Make sure to come back daily for more Malawi business news updates.

Quick Links: Malawi Banking News | Malawi Technology News | Download Business eBooks | Ten Signs You Are An Entrepreneur | What is a Managing Director?

Today’s top business story: Top Commercial Banks In Malawi

Source link