The Central Bank of Eswatini (CBE) has intensified calls to implement a national electronic Know Your Customer (e-KYC) framework, calling it a critical safeguard for Eswatini’s financial system amid the growing digital transformation.
The call was made at the close of a multi-stakeholder workshop on Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), Counter Proliferation Financing, and e-KYC, held in collaboration with FinMark Trust and the Eswatini Financial Intelligence Centre.
Speaking on behalf of the CBE Deputy Governor, Nomfanelo Kunene, Deputy Director for Financial Integrity, said the development of a national e-KYC framework represents more than a technological upgrade, stating that it is a structural reform designed to strengthen financial integrity, prevent fraud, and expand inclusion.
Kunene noted that financial institutions nationwide continue to face challenges, including slow, costly identity verification processes, fragmented data systems, and onboarding procedures that often exclude citizens and small businesses from accessing essential financial services.
“These challenges are not abstract,” she said. “They affect entrepreneurs awaiting funding, families relying on remittances, and public institutions striving for efficiency.”
According to Kunene, the national e-KYC framework will enable faster, more secure, and more reliable identity verification. By digitizing and centralizing identity checks, regulators and financial institutions will be better equipped to prevent fraud, impersonation, and illicit financial flows.
“With e-KYC, identity verification becomes faster, more secure, and more reliable. It strengthens our ability to prevent fraud and impersonation, improves AML/CFT compliance across all sectors, and ensures supervisory attention is directed where risks truly lie,” she said.
The system will also support a risk-based supervisory approach, enabling regulators to focus resources on high-risk areas while reducing unnecessary compliance burdens for low-risk customers.
Beyond safeguarding the financial system, the Central Bank views e-KYC as a catalyst for inclusion. Currently, onboarding often requires multiple documents and in-person branch visits, a process that disproportionately affects rural communities and micro, small, and medium-sized enterprises (MSMEs).
Under a digital framework, customers would be able to verify their identities electronically through a single digital process, reducing paperwork and improving access to services. Kunene explained that this shift aligns with Eswatini’s broader national objectives, including the Financial Inclusion Strategy, the Fintech Strategy, and the Digitalisation Strategy. The e-KYC framework is also expected to integrate with the ongoing national payment switch project and the planned modernization of the country’s digital identity infrastructure.
The model would allow individuals to consent to the sharing of their verified data among financial service providers, eliminating the need to repeatedly submit physical documents when accessing different services.
Although the national framework is still being formalized, Eswatini’s experience with e-KYC is not new. The country’s first significant exposure to electronic onboarding came in 2018, when Eswatini Mobile introduced remote customer onboarding with selfie verification and ID photo capture.
Subsequent collaboration with the Ministry of Home Affairs enabled financial institutions to access civil registry verification services, thereby strengthening identity authentication processes. The introduction of digital onboarding platforms, such as Unayo, further expanded access, contributing to increased nationwide uptake of financial products.
Kunene emphasized that the success of the national e-KYC system depends on coordinated action among multiple institutions. “No single institution can achieve this alone,” she said.
Kunene concluded that the national e-KYC framework marks a defining step in Eswatini’s digital transformation journey.
“Together, we are not merely implementing a new verification tool. We are building a trusted digital identity ecosystem that empowers Eswatini’s people, strengthens our institutions, and positions our nation as a leader in digital transformation across SADC.”