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Swaziland Banking Regulations

Conglomerates and Foreign Financial Institutions

The Central Bank of Swaziland has released a revised set of regulations aimed at promoting prudential banking practices and ensuring the stability of the financial system. The new rules, which come into effect on [date], apply to conglomerates and foreign financial institutions operating in Swaziland.

Conglomerates

A conglomerate is defined as a group of financial institutions, or a group comprising financial institutions, insurers, securities dealers (whether local or foreign), and other undertakings whose main business cannot be classified as falling within financial services or related sectors. For purposes of this section, control means the power to exercise a significant influence over the management or operations of an institution.

  • The Bank may impose conditions on the grant of a licence, including limitations on the activities of the conglomerate.
  • The licence may be revoked if the holder fails to comply with the terms and conditions of the licence, or comes under the provisions of section 49.

Foreign Financial Institutions

Any person other than a licensed financial institution proposing to act as an agent for a foreign financial institution not licensed in Swaziland must apply to the Bank for a licence before engaging in such representation or activity.

  • The application shall be in writing and contain full particulars of the applicant’s authority to act as agent, the business they propose to carry on, and the manner in which and places where they propose to carry on such business.
  • The licence shall be granted for a period not exceeding one year, but may be renewed upon application to the Bank made prior to the expiry of the period for which the licence was granted.

Licensing of Agents and Annual Fees

Any person proposing to act as an agent of a financial institution not licensed in Swaziland must apply to the Bank for a licence before engaging in such representation or activity.

  • The licence shall be granted for a period not exceeding one year, but may be renewed upon application to the Bank made prior to the expiry of the period for which the licence was granted.
  • The licensee shall, upon the granting or renewal of their licence, pay an annual fee to the Bank for the account of the Consolidated Fund.

Revocation of Licences

If the Bank has revoked a licence, it shall publish a notice of the revocation in the Gazette and in a newspaper of general circulation in Swaziland.

  • The holder of a revoked licence commits an offence and is liable on conviction to a fine of fifty thousand Linalatigeni (E1,350,000) and all additional fines not less than twenty-five thousand timalangen (E25,000) in respect of each day on which the contravention continues.

Disclosure Requirements

With respect to any licensed financial institution, the Bank may require such institution to disclose certain information to the public.

  • The Bank shall publish a notice of the disclosure requirements in the Gazette and in a newspaper of general circulation in Swaziland.

The new regulations aim to promote transparency, stability, and sound banking practices in the financial sector. The Bank urges all licensed financial institutions and conglomerates to familiarize themselves with the revised rules and ensure compliance therewith.