Government says processes are at an advanced stage in developing a Bill which when enacted, will provide the necessary operating environment for the real estate sector.
The development follows findings by the 2018 National Risk Assessment, which revealed that real estate sector is rated as posing the highest money laundering risk to the country.
Speaking in Lilongwe during a high-level stakeholder meeting for the real estate, Deputy Minister of Lands Deus Gumba said government is aware of the loopholes that are in the current legislation governing the estate sector.
In an interview, Gumba said government will continue working with the Financial Intelligence Authority (FIA) and other stakeholders to provide a policy and legal framework that will guarantee the growth of the real estate sector.
“To this end, the ministry is currently developing a bill, which when enacted, will provide the necessary operating environment for the real estate sector.
“My ministry will therefore continue working closely with the FIA and other stakeholders to provide a policy and legal framework that will guarantee the growth of the real estate sector while eliminating elements that would promote financial crimes such money laundering and terrorist financing,” he disclosed.
Concurring with Gumba, FIA Director General Jean Phillipo-Priminta stressed on the need for multilateral approach in dealing criminality happening in the sector.
She said: “Our interest from FIA is market entry requirements for real estate agents and how they are managed so that we are able to get information from them about the transaction they dealt with their customers, that’s our interest.
“And we are hoping that this law would also address these concerns that are coming from FIA’s perceptive.”
Non-enforcement of sanctions for non-compliance is one of the challenges that the Authority faced challenges in supervising the sector.
The day-long workshop has brought together officials from the Treasury, Malawi Housing Corporation (MHC), Malawi Investment Trade Centre (MITC), Senior Government representatives, members of Real Estate Sector Taskforce and the Press.
