Swaziland’s Financial Regulation Department: Protecting the Integrity of the Kingdom’s Financial Systems
The Financial Regulation Department (FRD) of the Central Bank of Swaziland plays a crucial role in safeguarding the kingdom’s financial institutions and maintaining compliance with various legislations. This department is the guardian of Swaziland’s financial systems, and its mandate includes the following acts:
- Central Bank Order
- Financial Institutions Act
- Exchange Control Order
- Money Laundering and Terrorism Financing (Prevention) Act
Each act grants distinct responsibilities to the FRD, which is composed of the following divisions:
- Banking Supervision Division
- Policy & Enforcement Division
- Financial Surveillance Division
- Financial Stability Unit
Banking Supervision Division
This division is dedicated to supervising banks and ensures their compliance with international Core Principles for Effective Banking Supervision. With both onsite and offsite approaches, it regularly assesses banks’ financial information to safeguard depositor funds and maintain a sound financial sector, contributing to Swaziland’s economic growth.
Financial Surveillance Division
Responsible for monitoring exchange controls and preserving the integrity of the financial system, the Financial Surveillance Division administers exchange control regulations on behalf of the Central Bank. Its name change from “Exchange Control” to “Financial Surveillance” signifies a shift towards post-monitoring of foreign currency transactions, promoting financial development and easing the business environment.
Anti-Money Laundering Unit
An integral part of the Financial Surveillance Division, the Anti-Money Laundering Unit combats money laundering, terrorism financing, and proliferation financing of weapons of mass destruction within the banking sector. Adopting a risk-based approach, it stays agile by conducting sectorial risk assessments, monitoring trends, and collaborating with competent authorities.
Policy & Enforcement Division
The Policy & Enforcement Division formulates and develops financial policies for sector institutions under the FRD. Its mission is to ensure Swaziland’s regulatory frameworks remain modernized and effective while implementing enforcement actions on regulated institutions, prioritizing financial system stability, integrity, and consumer protection.
Market Conduct & Consumer Protection Unit
This unit within the Policy & Enforcement Division oversees market conduct practices of banks and financial services providers to ensure compliance with Swaziland’s regulatory framework. Its mission is to secure protection and fair treatment for consumers, maintain financial system integrity, and promote competition. To achieve these goals, it employs onsite and offsite supervision, research, and public awareness initiatives.
Financial Stability Unit
The Financial Stability Unit, the macro-prudential arm of the FRD, assesses systemic risks in the financial system. Its mandate includes providing an overview of Swaziland’s financial system’s stability and resilience as outlined in the Central Bank Order and the Constitution. Through data collection, analysis, and regular assessments, the unit safeguards the vulnerabilities of the financial system, ultimately ensuring financial stability and confidence for all stakeholders.