High Court upholds foreign exchange regulations, dismisses BAM’s judicial review bid
Led the state in the case
The High Court in Lilongwe has dismissed an application by the Bankers Association of Malawi (BAM) seeking judicial review of the newly implemented Exchange Control Regulations (ECR), introduced by the Minister of Finance and Economic Planning.
The dismissal comes with costs.
BAM, through its legal counsel Kalekeni Kaphale, challenged the regulations on the grounds of unconstitutionality, arguing that they infringed on property rights and were enacted without sufficient stakeholder consultation.
The contested measures include the compulsory conversion of foreign currency earnings and the requirement for foreign-denominated accounts to be opened with the Reserve Bank of Malawi.
In response, Attorney General Thabo Chakaka-Nyirenda, assisted by Counsel Neverson Chisiza, maintained that BAM lacked legal standing to initiate the case, citing the absence of explicit authorization from member banks directly affected by the regulations.
Delivering the ruling, Justice William Yakuwawa Msiska of the High Court’s Civil Division concurred with the government’s position.
He ruled that BAM did not possess the requisite locus standi to challenge the regulations, noting that the legal impact is more directly borne by commercial banks and NGOs rather than the association itself.
The court’s decision clears the path for continued enforcement of the Exchange Control Regulations, which the government says are critical in combating illicit financial flows and promoting economic stability.
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