Reserve Bank Introduces New Accounts for Malawians Living Abroad

The Reserve Bank of Malawi has introduced new special bank accounts called Diaspora Foreign Currency Denominated Accounts (FCDAs). These accounts are meant to make it easier for Malawians living outside the country to access banking services in Malawi and to encourage them to send money back home. In a statement, Deputy Reserve Bank Governor for economics and regulation, Henry Mathanga, said Malawian citizens can now open a Diaspora FCDA if they provide proper documents showing that they have moved, or will move, outside Malawi for at least 12 continuous months.

To open a Diaspora FCDA, applicants must provide some of the following documents: Mathanga said these accounts come with several benefits, including: The Central Bank also said that if a diaspora account holder returns to Malawi, either temporarily or permanently, money earned from abroad will still be treated as diaspora funds, as long as the person provides proof of those earnings. The statement added that money sent or received through Diaspora FCDAs will not be affected by exchange control rules, making international transactions easier. Account holders are allowed to withdraw foreign currency once per month, up to 50 percent of their account balance.

Any withdrawal above this limit needs approval from the Reserve Bank. The Reserve Bank said it is committed to creating policies that encourage Malawians in the diaspora to continue sending money back home to support the economy.