FATF status

Eswatini is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations​

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Eswatini was undertaken in 2022. According to that Evaluation, Eswatini was deemed Compliant for 3 and Largely Compliant for 11 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

The Prevention of Corruption Act and the Public Procurement Act in Eswatini aim to combat corruption, particularly among public officials, but enforcement is inconsistent and often ineffective. Corruption allegations frequently involve personal relationships and bribery related to government contracts, with significant issues raised during the 2023 Sibaya parliament discussions. Although Eswatini is a signatory to various anti-corruption conventions, the Anti-Corruption Commission has struggled to bring cases to trial, and internal controls against bribery are not mandated by law.

Eswatini, a landlocked nation with a population of over 1.2 million, is striving to establish itself as an export-oriented economy, primarily relying on South Africa for trade, which accounted for 68% of its exports in 2021. The country has a per capita GDP of $3,987 and faces high poverty levels, with 59% of the population living below the national poverty line. Despite recent economic growth of 4.8% in 2023, the economy is challenged by high unemployment rates, inflation, and a significant reliance on State-Owned Enterprises.

Eswatini's investment climate is characterized by its eligibility for the African Growth and Opportunity Act (AGOA) and the enactment of the Special Economic Zones (SEZ) Act, which offers various incentives for foreign investors. However, the country faces challenges such as a slow pace of reform in investment policies, high unemployment rates, and a history of civil unrest that has raised concerns among potential investors. Despite these issues, the government is actively seeking to attract foreign investment, particularly in the renewable energy sector, to drive economic growth.