Financial Crime World

Swaziland’s Money Laundering and Financing of Terrorism Act, 2011: A Comprehensive Look at the Definition of Key Terms

The Money Laundering and Financing of Terrorism (Prevention) Act of 2011 in Swaziland is a crucial legislative tool against financial crimes. To effectively understand and apply this law, it is essential to familiarize oneself with its definitions.

Key Terms and Their Interpretations

Section 2 of the Act lays out the following interpretations for various terms used throughout the Act:

Act of Terrorism

An act of terrorism is defined as an act as defined in the Suppression of Terrorism Act, 2008.

Beneficial Owner

A beneficial owner is a person or persons who ultimately own or control a customer and/or the person on whose behalf a transaction is being conducted.

The Board

The Board refers to the board of the Swaziland Financial Intelligence Unit.

Accountable Institution

An accountable institution is a broad term encompassing various types of financial and non-financial entities. These include:

  • Banks
  • Insurance companies
  • Law firms
  • Trust or company service providers
  • And others that carry out activities such as:
    • Accepting deposits
    • Money transmission
    • Money-broking
    • Or creating, operating, or managing legal persons or arrangements

Money-laundering

Money-laundering is the process of knowingly or unknowingly:

  • Converting
  • Transferring
  • Concealing
  • Disguising the true nature or ownership of property derived from unlawful activity

With the aim of:

  • Aiding or supporting anyone involved in the commission of that unlawful activity
  • Or evading legal consequences

Politically Exposed Person

A politically exposed person (PEP) is defined as a person who holds or has held a prominent public position, whether in Swaziland or a foreign country. This term is of particular importance due to the higher risk associated with financial transactions involving such individuals.

The Importance of Definitions in Preventing Financial Crimes

These definitions are vital in safeguarding Swaziland’s financial system and preventing money laundering and terrorism financing activities within its borders. A thorough understanding of the terminology used within the Money Laundering and Financing of Terrorism (Prevention) Act, 2011 is essential to effectively combating these illicit practices and promoting transparency.

Here’s a summary of the key definitions and their interpretations:

  • An act of terrorism: An act as defined in the Suppression of Terrorism Act, 2008
  • Beneficial owner: A person or persons who ultimately own or control a customer
  • The Board: The board of the Swaziland Financial Intelligence Unit
  • Accountable institution: Various financial and non-financial entities involved in financial activities
  • Money-laundering: Converting, transferring, concealing, or disguising the true nature or ownership of property derived from unlawful activity
  • Politically Exposed Person (PEP): A person who holds or has held a prominent public position in Swaziland or a foreign country.