Financial Crime World

Eswatini’s Banking Regulations Toughen Up on Anti-Money Laundering

The Financial Regulation department of the Bank of Eswatini has taken a significant step to strengthen its anti-money laundering (AML) regulations, aimed at combating financial crimes and ensuring the stability of the country’s financial system.

Regulatory Mandate

According to the department’s mandate, it is responsible for regulating and supervising banks and other financial institutions in the kingdom. The department’s functions are divided into several units:

  • Banking Supervision Division: Responsible for supervising banks, ensuring their soundness and stability.
  • Financial Surveillance Division: Monitors exchange controls in the country, ensuring the integrity of the financial system.
  • Anti-Money Laundering Unit: Responsible for AML matters, adopting a risk-based approach to identification, understanding, assessment, and mitigation of Money Laundering/Terrorist Financing/Proliferation Financing risks in the banking sector.
  • Policy & Enforcement Division: Formulates and develops financial policies for the sector institutions within the purview of the Bank. Reviews and updates the existing regulatory framework to ensure it remains fit for purpose.
  • Market Conduct & Consumer Protection Unit: Ensures that banks and other financial services providers have market conduct-related policies and practices that comply with the applicable regulatory framework, securing an appropriate degree of protection and fair treatment of consumers.
  • Financial Stability Unit: Responsible for assessing systemic risk in the system, working with other stakeholders to ensure the stability of the financial system. Disseminates its assessment of systemic risk through the annual Financial Stability Report (FSR).

AML Regulations

The Bank’s AML regulations are aimed at ensuring the safety and soundness of the financial sector, protecting consumers, and promoting economic development in Eswatini. These regulations are designed to:

  • Prevent money laundering and terrorist financing
  • Ensure the integrity of the financial system
  • Protect consumers from fraudulent activities
  • Promote transparency and accountability in the banking sector

By strengthening its AML regulations, the Bank of Eswatini is demonstrating its commitment to ensuring a stable and secure financial system that supports economic growth and development.