By 
By Ncaba Ntshakala
The rising cases of suspected money laundering in the country have reached alarming scales.
he first quarter of the 2024/2025 financial year has revealed alarming figures concerning the laundering of illicit funds in Eswatini, as detailed in the Ministry of Finance’s 1st Quarter Performance Report.
The report reveals that the total amount potentially laundered during the period reached E433,875,354.54. Despite a reduction in tax evasion cases, the potential money laundered during this period has surged, casting a spotlight on the ongoing challenges faced by the nation in combating financial crimes.
During the quarter, the Eswatini Financial Intelligence Unit (EFIU) reported 138 Suspicious Transaction Reports (STRs) related to tax evasion, with the potential amount laundered reaching a staggering E307,212,040.51.
This figure represents a significant increase from the previous quarter, highlighting a persistent issue within the country’s financial landscape.
Additionally, money laundering-related cases accounted for 98 STRs, with potential funds laundered amounting to E60,646,542.94. These figures were said to highlight the sophistication and scale of financial crimes currently taking place.
Drug trafficking has also emerged as a major concern, with 47 STRs reported during the quarter.
The potentially laundered amount tied to drug-related offences was E127,761,287.28, reflecting the dangerous intersection of drug trafficking and financial crime.
Fintech services were identified as a significant channel for laundering illicit funds, with a staggering SZL 433,875,354.54 potentially laundered in the last quarter alone.
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The EFIU has been proactive in its efforts to monitor and report suspicious transactions. A total of 87,747 Cash Threshold Reports (CTRs) were received, covering transactions amounting to E3,317,233,738.93. These reports are crucial in identifying potential money laundering activities, as they track any cash transaction equal to or exceeding E15,000.00.
In response to these findings, the EFIU produced 11 reports, both proactive and reactive, for law enforcement agencies. These reports included four proactive disseminations, three of which were sent to the Eswatini Revenue Service (ERS) and one to the Royal Eswatini Police Service (REPS).
The EFIU also handled 14 requests for financial intelligence from law enforcement, resulting in the dissemination of seven reactive reports, including one each to ERS and REPS, and five to the Anti-Corruption Commission (ACC). The total amount disseminated for investigation during the quarter was E54,467,604.00.
The report asserts that significant legal actions were taken during the quarter, with updates from the Director of Public Prosecutions (DPP) on three cases. Two forfeiture court orders were issued, one involving cash amounting to E1,495,615.38 and a house, and another involving two cars and household items.
A preservation court order was also issued on a motor vehicle and a developed property. However, no feedback was received from the ACC, REPS, or the Internal Security Service of Eswatini (ISSS).
The EFIU, which oversees compliance with the Money Laundering and Financing of Terrorism (Prevention) Act of 2011, as amended, continues to play a vital role in safeguarding Eswatini’s financial system.
The unit is not only responsible for monitoring compliance but also for training accountable institutions and conducting risk-based inspections to ensure adherence to Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) requirements.
In a major development, the National AML/CFT Technical Committee, chaired by the EFIU, approved the National Money Laundering (ML) and Terrorism Financing (TF) Risk Assessment on June 19, 2024.
This assessment, which will be presented to the Cabinet for government approval, marks a major milestone for the country, addressing shortcomings identified by the Financial Action Task Force (FATF) regarding risk management.
Furthermore, the EFIU collaborated with the Central Bank of Eswatini and the Attorney General’s Office to finalize an omnibus bill aimed at rectifying technical compliance issues highlighted in the country’s mutual evaluation report.
The bill, approved by the Council of the Task Force on June 19, 2024, is expected to be presented to Parliament by the end of July 2024.
The quarter also saw the EFIU engaging with international partners, including representatives from the United States and the United Nations Office on Drugs and Crime (UNODC), to enhance Eswatini’s framework for inter-agency cooperation in asset recovery.
The EFIU’s involvement in these high-level discussions was also noted to view its commitment to strengthening the country’s AML/CFT governance framework.
Additionally, the EFIU participated in the 47th meeting of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Task Force in Angola, where Eswatini’s delegation presented the country’s second follow-up report.
The EFIU was encouraged to continue with its Egmont Group application, a critical step towards enhancing the quality of financial intelligence produced by the unit.
Moreover, last financial year, which is the end of the 2023/24 financial year (FY), the Ministry of Finance revealed the activities of the Eswatini Financial Intelligence Unit (EFIU) in its role in combating money laundering and other financial crimes in the Kingdom.
In that report presented in Parliament, it was viewed that the EFIU received a significant volume of Suspicious Transaction Reports (STRs) in 2023, totalling 1,005. These reports flagged transactions with a potential laundered amount of E283,139,335.80, indicating a substantial flow of funds suspected to be illicit.
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Furthermore, the unit received 38,652 Cash Threshold Reports (CTRs) with a combined transaction value of E3,484,084,588.00. CTRs are mandatory reports filed by accountable institutions (such as banks) when handling cash transactions exceeding a certain threshold.
The EFIU was said to have actively disseminated information derived from these reports to relevant authorities. In 2023, the unit produced 16 proactive/spontaneous intelligence reports shared with law enforcement agencies, potentially aiding investigations into financial crimes.
The report also sheds light on the types of offences identified through reported transactions. Tax evasion was also said to remain the most prevalent predicate offence (the underlying crime generating the suspicious funds) reported in the Kingdom.
The Eswatini Financial Intelligence Unit (EFIU) is a structure responsible for receiving Suspicious Transaction Reports (STRs) from Accountable Institutions (AIs).
After careful analysis, which may involve cross-referencing information from its own database or external sources, the EFIU disseminates intelligence to Law Enforcement Agencies (LEAs).
These LEAs include the Royal Eswatini Police Service (REPS), the Anti-Corruption Commission (ACC), and the Eswatini Revenue Authority (ERA). The EFIU also responds to specific requests from LEAs for financial intelligence.
