CENTRAL Bank of Eswatini (CBE) Governor Dr Phil Mnisi has sounded the alarm over growing risks of money laundering disguised as large-scale foreign investment.
He warned that the country’s open and investor-friendly economy is increasingly being eyed by unscrupulous individuals seeking to exploit it for illicit financial flows.
Speaking when presenting the bank’s annual Monetary Policy Statement, under the theme ‘In Pursuit of Prudent Monetary Policy in Times of Uncertainty Due to Global Trade Disruptions,’ at the CBE Complex yesterday, Mnisi said the country’s stable macroeconomic environment and welcoming investment posture may be drawing the wrong crowd.
“The issue of anti-money laundering control, I think this is a very important one. We need to protect the country, because while legitimate investments are welcome, we should not tolerate exploitation under the guise of development,” he said.
“Some people see this as a playing field where they can wash out proceeds that are illegal,” he added.
He described how suspected actors are presenting extravagant proposals, some even claiming to bring investments as large as €450 billion, only to demand hasty endorsements by top-level authorities.
“They say, ‘We just love this country, but governor, just sign here together with the minister of finance, and sometimes even with the Head of State or the prime minister,’” he revealed.
“But when this money arrives, half of it must go back. You can use the difference, clearly, when you see something like this, it is just red light,” he said.
The governor, however, assured that the CBE is intensifying its vigilance against illicit financial activities, stating that with the rise of cross-border financial flows and complex investment structures, regulatory agencies are being pressed to tighten oversight to prevent the kingdom from becoming a conduit for dirty money.
He promised the nation that the bank has enhanced its legal and institutional framework to curb financial crimes, calling on regulated financial institutions to remain alert and exercise thorough due diligence, especially when approached by entities making unusually generous investment offers with vague or suspicious motives.
“The laws that we have now are much tighter and we believe that we are on the right path. We are going to do all that we have to do,” he said, calling for a collective commitment from regulators, banks, businesses, and policymakers to defend the integrity of the country’s financial system.
“In everything we do, we must remain vigilant because once compromised, trust is difficult to restore,” the governor cautioned. While warning of external threats, the governor simultaneously reinforced the bank’s commitment to driving inclusive economic growth, reiterating that entrepreneurship and small business development remain at the core of the kingdom’s financial inclusion strategy.
“We want people to thrive. That’s why we have got SME schemes and financial inclusion initiatives. They are aimed to make sure that everybody participates in the economy,” Mnisi stated.
Addressing banks directly, he encouraged them to prioritise lending and play their intermediation role instead of channelling most deposits into government securities.
“They shouldn’t just take money and put it in treasury bills and treasury funds. They must intermediate, take the deposits and lend them, especially to SMEs. Because SMEs are at grassroots level, and they are the engine for growth for the economy,” he said. Captains of industry were also present at the event, including Nedbank Eswatini Managing Director Fikile Nkosi, Swaziland Building Society MD Mbali Sibanyoni, Eswatini Sugar Association CEO Banele Nyamane, Lidwala Insurance MD Thokozani Nkambule, Small Enterprises Development Company CEO Khethiwe Mhlanga, and Business Eswatini CEO E. Nathi Dlamini.
