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 with corruption, as highlighted by the Prevention of Corruption Act and the Public Procurement Act, which are inconsistently enforced. Corruption allegations often involve personal relationships influencing government contracts and appointments, with the Anti-Corruption Commission struggling to bring cases to trial. Additionally, the country grapples with human trafficking, counterfeit goods trade, and financial crimes, all exacerbated by weak governance and a lack of effective law enforcement.

Eswatini, a landlocked nation with a population of over 1.2 million, is striving to develop an export-oriented economy while facing significant challenges such as high poverty rates and a reliance on South Africa for trade, which constitutes 68% of its exports and 72% of its imports. The country has a per capita GDP of $3,987 and has experienced economic growth of 4.8% in 2023, following a period of stagnation, although it continues to grapple with high unemployment and inflation rates.

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 provide various incentives for foreign investors. However, the country faces challenges such as a slow pace of reform in investment policies, high unemployment rates, and socio-political unrest that dampen investor confidence. Despite these issues, the government is actively seeking foreign investment to drive economic growth and improve international competitiveness.