Financial Crime World

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AML Compliance Training in Swaziland: Preventing Money Laundering and Terrorism Financing

Swaziland has issued guidelines to prevent money laundering and terrorism financing, in line with international best practices. The guideline aims to ensure that all financial institutions operating in the country adhere to strict anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Underlying Principles

The Financial Services Regulatory Authority (FSRA), empowered by Section 35 of the Money Laundering and Financing of Terrorism Prevention Act, has set out the underlying principles for accountable institutions, including brokers, to follow. These principles include:

  • Exercising due diligence
  • Conducting business in conformity with high ethical standards
  • Assisting law enforcement authorities in preventing money laundering and terrorism financing

Definition of Money Laundering

Money laundering is defined as the process of converting funds or property believed to be obtained through illegal or criminal activities into other assets to conceal their true origin. The main objective is to legitimize the income, thereby losing its criminal identity.

Role of Board of Directors

The guideline emphasizes the role of the board of directors in ensuring compliance with AML/CFT requirements. The board is responsible for:

  • Approving policies and procedures
  • Monitoring the effectiveness of the AML/CFT risk management and compliance program
  • Ensuring that both the broker and its employees comply with the regulations

Senior Management Oversight

Senior management has a crucial oversight responsibility to ensure that the AML/CFT program is adequately implemented and that all employees have access to relevant information.

Anti-Money Laundering Officer (AMLO)

The AMLO is responsible for:

  • Developing a risk-based AML/CFT risk assessment and compliance program
  • Ensuring that it is documented and approved by the board
  • Reacting promptly to any suspected money laundering or terrorism financing

Risk Management and Compliance Program

Accountable institutions must develop, document, maintain, and implement an anti-money laundering and countering the financing of terrorism risk management and compliance program. This program must be made available to relevant employees and submitted to the FSRA or SFIU upon request.

Customer Due Diligence (CDD)

The guideline emphasizes the importance of CDD, which includes:

  • Identifying natural persons that act on behalf of customers
  • Verifying their identities using reliable sources
  • Obtaining information about beneficial owners

Record-Keeping

The guideline also provides guidelines for keeping records, including the use of third-party record-keeping services.

Consequences of Non-Compliance

Non-compliance with these regulations exposes brokers to disciplinary measures under Section 35 of the Money Laundering and Financing of Terrorism Prevention Act and Sections 67 and 68 of the FSRA Act, 2010.

Conclusion

AML compliance training is essential in preventing money laundering and terrorism financing in Swaziland. Financial institutions must adhere to strict regulations to ensure transparency and integrity in their operations. Contact the FSRA at 2406 8000 or aml@fsra.co.sz for more information on AML compliance requirements.