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 influenced by personal relationships. Corruption is a significant issue affecting government operations, with reports of bribery impacting contract awards and public service delivery. Although Eswatini is a signatory to several anti-corruption conventions, the Anti-Corruption Commission has struggled to bring cases to trial, highlighting the challenges in effectively addressing corruption in the country.

Eswatini, a landlocked nation with a population of over 1.2 million, is striving to develop an export-oriented economy, heavily reliant on South Africa for trade. The country has a per capita GDP of $3,987 and faces significant poverty challenges, with 59% of its population living below the national poverty line. Despite recent economic growth of 4.8% in 2023, Eswatini's economy is hindered by high unemployment rates and a large informal sector.

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 provides various incentives for foreign investors. However, the pace of reform in investment policies is slow, and the country faces challenges such as high unemployment, civil unrest, and a significant presence of state-owned enterprises that stifle competition. Despite these hurdles, the government is actively seeking foreign investment to drive economic growth and improve international competitiveness.