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Eswatini financial system remains vulnerable – EFIC

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Director General at EFIC Babhekile Matsebula issued a warning highlighting the local audit environment. (Pics: Khulile Thwala)
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MBABANE – Eswatini’s financial system will remain at risk of criminal infiltration unless the country’s audit profession intensifies its vigilance in detecting fraud and money laundering.

This was the strong warning issued by Babhekile Matsebula, Director General of Eswatini Financial Intelligence Centre (EFIC) during an address to the Association of Certified Fraud Examiners (ACFE) Eswatini Chapter, where financial crime, professional ethics and systemic vulnerabilities took centre stage.

In a powerful message to auditors, accountants, regulators and financial institutions, the director general emphasised that the stability and credibility of the country’s financial sector now depend more than ever on auditors embracing their frontline role in the national fight against financial crime.

 “Auditing reveals the truth; fraud distorts the truth; money laundering buries the truth,” she warned, adding that when these forces collide, the result is not only financial loss, but a direct threat to national security, economic resilience and public trust.

Matsebula highlighted that auditors are often the first line of defence. However, when audits are weakened by limited capacity, conflicts of interest or management pressure, fraudulent activity is not merely missed, it thrives, she said.

Matsebula further highlighted that a compromised audit environment provides fertile ground for misconduct, enabling criminals to manipulate financial information, hide illicit funds and exploit institutional blind spots.

 “No auditor today can claim, ‘AML is not my business.’ Those days are gone,” she stated, stressing that modern auditors must identify red flags such as unusual transactions, falsified documents, contradictory financial patterns and related-party dealings that defy economic reality.

She said the conference highlighted the interconnectedness of financial crimes, noting that fraud creates illicit proceeds, while money laundering provides ‘the passport and disguise’ that allows criminals to legitimise those funds. “Once cleaned, these proceeds infiltrate the legitimate economy, empowering organised crime, fuelling corruption and weakening national development efforts.”

According to Matsebula, the Eswatini Bankers Association has repeatedly cautioned that in a technology-driven era – where digital services cross borders and anonymity thrives – criminals adapt quickly. “Fraud has no boundaries; guard your digital wallet,” their campaign emphasised as highlighted by Matsebula.

EFIC director general reiterated its mandate to safeguard the integrity of the national financial system, but warned that its effectiveness is inseparable from the strength of the audit profession and other financial gatekeepers.

The director general stressed that accurate reporting, ethical conduct and timely responses from regulators and law enforcement are critical to preventing abuses.

*Full article available in our publication

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