Malawi Parliament Passes Financial Services Amendment Bill to Recover Unclaimed Bank Funds

• Malawi's Parliament has been informed that the Financial Services (Amendment) Bill has been passed, aiming to recover millions of kwacha in unclaimed bank funds.
• The law establishes clear guidelines for handling these funds and ensuring they are returned to their rightful owners.
• MP Dimba has cautioned against the government using this money for personal gain, sparking debate over potential misuse.

However, MP Dimba has cautioned against the government using this money for personal gain.

Malawi's Parliament has been informed that the Financial Services (Amendment) Bill, Bill No. 10 of 2026, has been passed, aiming to recover millions of kwacha in unclaimed bank funds following bank failures. The bill tightens regulations around these unclaimed funds. However, MP Dimba has cautioned against the government using this money for personal gain.

The Financial Services (Amendment) Bill, which has now been passed, is a response to the growing issue of bank failures in Malawi, which have left millions of kwacha unclaimed. The law establishes clear guidelines for handling these funds and ensuring they are returned to their rightful owners. This development has significant implications for lawyers advising clients on banking arrangements, as they will need to review any unclaimed funds held by banks that have failed.

The new law has sparked debate over the government's intentions regarding the recovered funds. MP Dimba's warning highlights concerns about potential misuse of these monies, which could undermine public trust in the government's financial management. The bill's passage will have far-reaching consequences for Malawi's financial sector and its citizens.

Lawyers should watch for the potential impact of the new law on their clients' banking arrangements and advise them to review any unclaimed funds held by banks that have failed.

Source: Original reporting via Nyasa Times