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 in governance and law enforcement. Corruption is deeply entrenched, affecting various sectors and hindering the rule of law, while human trafficking, drug trade, and financial crimes are prevalent, exacerbated by weak judicial and security systems.

Eswatini, a landlocked nation with a population of over 1.2 million, is striving to establish itself as an export-oriented economy while navigating challenges such as high poverty rates and a significant unemployment rate of 35.4%. The country benefits from membership in major free trade areas like SADC and COMESA, with South Africa being its primary trading partner, accounting for a substantial portion of its exports and imports. Despite recent economic growth of 4.8% in 2023 and a government push towards manufacturing and renewable energy, the investment climate is tempered by political instability, high levels of corruption, and a slow pace of regulatory reform, which together create a complex environment for potential investors.