Financial Crime World

Types of Financial Crimes in Swaziland Exposed in Leaked Files

A groundbreaking investigation has revealed the shocking truth about Eswatini’s role as a conduit for southern Africa’s gold smuggling economy. The country’s weak anti-money laundering controls have enabled figures close to the royal family to benefit from their proximity to the king.

A Hub for Illegal Financial Activities

The investigation, dubbed “Swazi Secrets,” is based on leaked files from the Eswatini Financial Intelligence Unit. These files reveal that Eswatini has been used as a hub for illegal financial activities, including:

  • Gold smuggling: The country’s weak anti-money laundering controls have made it easy for criminals to launder money through Eswatini.
  • Money laundering: Figures close to the royal family and government officials have been involved in financial crimes, using the country’s banks to facilitate their illicit activities.

A Tussle with the Central Bank of Eswatini

The investigation also reveals that King Mswati III and his allies have supported a new bank in a years-long tussle with the Central Bank of Eswatini. This has raised concerns about the country’s financial stability and the potential for further corruption.

Leaked Files Revealed

The leaked files include:

  • Suspicious transactions: Records of suspicious transactions, including large cash withdrawals and transfers to unknown accounts.
  • Police investigation reports: Reports from police investigations into financial crimes, including money laundering and fraud.
  • Court affidavits: Affidavits from court cases involving financial crimes, including allegations of corruption and embezzlement.
  • Confidential exchanges: Confidential exchanges between government agencies within southern Africa, revealing details about banks that have facilitated financial transactions for individuals and companies suspected of criminal activity.

Concerns Raised

The investigation has raised concerns about:

  • High unemployment rate: The country’s high unemployment rate, which is exacerbated by corruption and financial crimes.
  • Poor health outcomes: The poor health outcomes in Eswatini, which are worsened by the lack of resources and corruption.
  • Corruption: The widespread corruption in the country, which has enabled financial crimes to thrive.

Ongoing Investigation

The investigation is ongoing, and more details are expected to be released in the coming weeks. The International Consortium of Investigative Journalists (ICIJ) shared the files with media outlets around the world, and an international team of journalists has been working to analyze them.

Note: ICIJ is a nonprofit organization that publishes and archives leaks, and prioritizes independent journalism over government or law enforcement partnerships.