MBABANE – Eswatini has successfully strengthened its financial compliance framework, securing a significant boost to its standing within the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).
The country has moved safely above the threshold required to avoid greylisting.
Minister for Finance Neal Rijkenberg has confirmed the breakthrough, following the recent ESAAMLG Council of Ministers meeting in Addis Ababa, Ethiopia, where the country’s recent re-ratings were reviewed and fully approved.
“Out of 15 re-rating applications submitted, all were approved, boosting Eswatini’s compliance score significantly,” Rijkenberg announced. “This is a clear indication of the seriousness, with which the country has undertaken the reform process.”
Eswatini had previously fallen short during an audit, scoring only 14 requirements. Now, adding the 15 approved re-rating applications, Eswatini now stands above the minimum 20 requirements that a country needs to avoid being greylisted.
While celebrating this milestone, the Minister noted that a few outstanding legislative tasks remain. “We expect to complete the remaining reforms before year-end to ensure Eswatini stays safely out of any greylisting risk,” he added.
Greylisting is when a country is identified by the Financial Action Task Force (FATF) as having strategic deficiencies in its anti-money laundering and counter-terrorism financing (AML/CFT) framework. Such countries face enhanced scrutiny from international banks, potential reputational damage and risk losing access to global financial markets.
Experts warn that countries placed on the FATF grey list can suffer serious economic setbacks. These include:
- Reduced foreign investment as global businesses view greylisting as a signal of heightened financial risk.
- Higher transaction costs for banks and exporters due to increased due diligence requirements.
- Possible loss of correspondent banking relationships, limiting cross-border financial flows.
The International Monetary Fund (IMF) estimates that greylisting can lead to an average reduction of 7.7 per cent in capital inflows relative to GDP, underlining the urgency for countries to maintain full compliance with FATF standards.
For Eswatini, avoiding greylisting was not only about meeting technical standards, but also about safeguarding its economy and maintaining investor confidence.
“This progress gives assurance to the financial sector, investors and development partners that Eswatini is committed to international best practices,” said the minister.
Eswatini’s delegation to the 50th ESAAMLG Task Force Meeting of Senior Officials in Addis Ababa was led by PS Vusie Dlamini and comprised senior officials from key institutions. These included:
- The Attorney General Sifiso Khumalo
- The Governor of the Central Bank of Eswatini Dr Phil Mnisi
- The Director General of the Eswatini Financial Intelligence Centre (EFIC) Babhekile Matsebula.
- The Chief Executive Officer of the Centre for Financial Inclusion Sizakele Dlamini
- Members of Parliament and Senate from the Finance Portfolio Committee
- Senior government officials tasked with combating money laundering and terrorist financing
Minister Rijkenberg later joined the delegation for the Council of Ministers Plenary Meeting, where Eswatini’s re-rating request was tabled and approved in full.
The re-rating focused on 15 recommendations from the 2022 Mutual Evaluation Report that had flagged technical gaps in Eswatini’s compliance with FATF standards.
These gaps included customer due diligence, oversight of designated non-financial businesses, cross-border cash reporting and beneficial ownership transparency.
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Supports Commerce counterpart on MSMEs prompt payment drive
MBABANE – Beyond recent reforms targeting financial crime prevention, Minister for Finance Neal Rijkenberg has endorsed a call by his Cabinet counterpart, the Minister for Commerce, Industry and Trade, Manqoba Khumalo, for the prompt payment of small and medium enterprises (SMEs) supplying goods and services to government.
Speaking during a recent engagement, Rijkenberg said his ministry fully supports the appeal made by Khumalo and is working closely with the Ministry of Commerce to ensure MSMEs are paid on time.
“The Treasury has already reduced late payments to suppliers, and we are securing new loans to stabilise cash flow. Two loan approvals by Cabinet will soon be tabled in Parliament, and our expectation is that government’s arrears will be cleared within six weeks,” Rijkenberg said.
This announcement signals a major shift in how government handles its financial obligations to local businesses, with the minister for Finance making it clear that timely payments are now a top priority.
Khumalo reaffirmed his ministry’s commitment to supporting micro, small and medium enterprises (MSMEs) through the newly-launched National MSME Policy 2024–2029.
“One of the key priorities outlined in this policy is the prioritisation of payments to MSMEs, recognising their vital role in job creation, poverty reduction, and economic growth,” Khumalo said.
He pointed out that delayed payments from government, parastatals and the private sector have become a growing concern for business owners across the country. The ministry has since appealed to all institutions to ensure timely processing of outstanding invoices, warning that late payments undermine enterprise sustainability, lead to job losses and disrupt supply chains.
“Most MSMEs supply goods and services through business loans. Any delay in payment results in cashflow challenges, culminating in bankruptcy for some businesses. We are calling on all stakeholders to play their part in preventing these disruptions,” Khumalo emphasised. Rijkenberg echoed these sentiments, saying the Ministry of Finance stands ready to ensure financial bottlenecks are removed and arrears cleared swiftly to help the sector grow.
Beyond delayed payments, the minister for Commerce raised concerns about unethical practices within some institutions.
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Economic Significance for Eswatini
Avoiding greylisting offers Eswatini several economic advantages:
- Investor confidence – International investors view compliance positively, reducing the perceived risk of doing business in the country.
- Financial sector stability – Banks avoid costly enhanced due diligence processes imposed on institutions in greylisted jurisdictions.
- Trade facilitation – Exporters retain access to trade finance and smooth cross-border payments.
- Development financing – Donors and international financial institutions often tie funding to governance and compliance standards.
Despite the progress, Minister Rijkenberg emphasised that a few legislative reforms remain outstanding. These include:
- Strengthening measures for politically exposed persons (PEPs) to mitigate corruption risks.
- Enhancing international cooperation frameworks for money laundering investigations.
- Introducing safeguards for the non-profit sector to prevent misuse while preserving legitimate activities.
*Full article available in our publication.
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