Eswatini Country Summary

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.

Eswatini faces significant challenges related to crime and corruption, with widespread issues impacting governance and public trust. Corruption is prevalent, particularly in government procurement processes, and the judicial system struggles with inefficiency and a lack of independence, hampering effective law enforcement and accountability. Additionally, the country grapples with serious criminal activities, including human trafficking and drug cultivation, while its outdated governance structures and weak border security further exacerbate vulnerabilities to organized crime. Despite some efforts to combat these issues, including anti-corruption laws and international commitments, the overall resilience to crime remains low, with inadequate support systems for victims and restricted civil society engagement.

Eswatini, a landlocked nation with a population of over 1.2 million, is striving to transition into an export-oriented economy while maintaining relative stability compared to its regional neighbors. The country's economic landscape is characterized by a service-based economy, with significant reliance on South Africa as its primary trading partner, accounting for a substantial portion of its exports and imports. Despite its potential, Eswatini faces challenges such as high poverty rates, a high unemployment rate, particularly among youth, and a slow pace of reforms aimed at attracting foreign investment, compounded by a history of civil unrest and concerns over human rights.