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 the National Development Plan identifying it as a major barrier to development. Although Eswatini is a signatory to various anti-corruption conventions, the Anti-Corruption Commission has struggled to bring cases to trial, and no U.S. firms have reported corruption as a barrier to foreign direct investment.

Eswatini, a landlocked nation with a population of over 1.2 million, is striving to develop an export-oriented economy while facing high poverty levels, with 59% of its population living below the national poverty line. The country has a per capita GDP of $3,987 and has historically relied on a service-based economy, but is now refocusing on manufacturing for export due to developments in the African Continental Free Trade Area. Despite experiencing significant economic growth of 4.8% in 2023, Eswatini's economy is challenged by high unemployment rates and inflation, particularly affecting the youth.

Eswatini's investment climate is characterized by its efforts to attract foreign investment, particularly in the energy sector and through the establishment of Special Economic Zones (SEZs) that offer significant tax incentives. However, challenges such as high unemployment, civil unrest, and a slow pace of policy reform hinder the overall investment environment. The government is actively working to consolidate state-owned enterprises and improve regulatory frameworks to enhance competitiveness and drive economic growth.