MBABANE – Criminals are increasingly using cryptocurrency platforms and mobile money systems to launder illicit funds, as Eswatini faces a medium-high risk of money laundering and terrorism financing.
This was revealed by Director General of the Eswatini Financial Intelligence Centre (EFIC), Babhekile Matsebula, during the signing ceremony of a cooperation agreement between EFIC and Taiwan’s Ministry of Justice Investigation Bureau (MJIB) in Taiwan yesterday.
The agreement, she said, marks a new milestone in the strong and enduring bilateral relationship between the Kingdom of Eswatini and the Republic of China (Taiwan), aimed at strengthening cooperation in the global fight against money laundering, terrorism financing, proliferation financing and other transnational financial crimes.
She said the signing ceremony signifies another milestone in the strong and enduring bilateral relationship between the Kingdom of Eswatini and the Republic of China (Taiwan).
Explaining EFIC’s role, Matsebula said the institution — formerly known as the Eswatini Financial Intelligence Unit— is an autonomous national body established under the Ministry of Finance to implement the Money Laundering and Financing of Terrorism (Prevention) Act, 2011, as amended.
“Our mandate is to safeguard both the domestic and international financial systems from abuse by criminals and illicit actors,” she said.
To achieve this, EFIC collects and analyses information related to suspicious financial activities and generates intelligence, which is shared with law enforcement agencies for investigation. This ensures that financial crimes are detected, disrupted and ultimately dismantled.
She added that EFIC also supervises designated non-financial businesses and professions (DNFBPs) to ensure compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) obligations. Turning to the findings of the 2023 National Risk Assessment (NRA), Matsebula revealed that Eswatini’s overall money laundering risk is rated medium-high. She said the country’s most common proceeds-generating predicate offences, include drug trafficking, fraud, tax evasion and corruption.
“Our 2023 National Risk Assessment indicates that Eswatini’s overall money laundering risk is medium-high. Our high proceeds-generating predicate offences are drug trafficking, fraud, tax evasion and corruption,” she stated. Matsebula noted that the country faces several key vulnerabilities, such as porous borders, limited financial investigations and low prosecution rates for money laundering offences.
She warned that emerging risks have now evolved to include goods smuggling, fraudulent mobile money activities and the use of cryptocurrency exchanges to conceal proceeds of crime.
*Full article available in our publication
