By Phiwa Sikhondze
This marks a year since you were appointed Director General of the Eswatini Financial Intelligence Centre (EFIC). How have you found the role of leading such a sensitive yet influential institution in the country?
It has been a true honour to serve as the Director General of the Eswatini Financial Intelligence Centre (EFIC) over the past year. The role is undeniably sensitive, given EFIC’s mandate to safeguard our nation’s financial system against money laundering, terrorist financing and proliferation financing. Yet, it has also been rewarding. Leading EFIC demands strategic vision, collaboration, and an unwavering commitment to strengthening Eswatini’s AML/CFT/CPF framework.
I have been inspired by the professionalism of the EFIC team and the strong partnerships forged across regulators, law enforcement agencies, the private sector, and international stakeholders. Together, we have advanced our analytical capabilities, deepened stakeholder engagement and aligned our systems closely with global standards. These achievements reflect the power of collective effort and the importance of principled leadership in protecting financial integrity.
The first year has reaffirmed that robust governance and strategic focus are essential to building resilience in our financial sector. While the journey has been challenging, it has also been energising, driving home the value of collaboration and innovation in shaping a secure, transparent, and trusted financial environment for Eswatini. I look forward to continuing this work with renewed determination and shared purpose.
In simple terms, can you explain the functions, role, and objectives of the EFIC?
The EFIC is the country’s financial ‘early-warning system.’ Our job is to safeguard the local and global financial systems against financial crime, including money laundering, terrorist financing, and proliferation financing. The EFIC receives financial disclosures from the country’s accountable institutions, analyzes these disclosures using various data sources to produce intelligence reports, and disseminates financial intelligence reports to the country’s Law-Enforcement Agencies, who in turn conduct financial investigations to identify ML and TF cases. The EFIC also seeks to ensure that the country’s accountable institutions, Regulators, Law Enforcements Agencies and other Competent Authorities comply with the country’s Money Laundering and Financing of Terrorism (Prevention) Act, 2011 (as amended), AML by-laws and AML/CFT Global Standards. The EFIC also advises the government on policies and laws that strengthen the country’s defences against financial crime and align AML/CFT with international standards. Our main objective is to protect the integrity of Eswatini’s financial system.
You spent a considerable amount of time at the Financial Services Regulatory Authority (FSRA). How instrumental was that experience in preparing you for this role?
My time at the Financial Services Regulatory Authority was instrumental in preparing me for this role. FSRA gave me a deep, practical understanding of how the financial sector operates, from governance and compliance to market conduct and supervisory frameworks. Serving as General Manager for Capital Markets and later for Intervention and Enforcement exposed me to complex regulatory challenges. It strengthened my ability to apply the law in high-stakes environments. That experience built my capacity to interpret risks across different sectors, engage effectively with industry stakeholders, and make decisions grounded in both technical analysis and sound judgment. It also sharpened my appreciation for the importance of regulatory integrity and proactive supervision, principles central to the work of a financial intelligence centre. In many ways, FSRA was a natural foundation for my transition to EFIC. The skills I developed there, strategic leadership, cross-institutional collaboration, and decisive enforcement, are the very skills required to lead a national financial intelligence agency. That background has enabled me to approach this role with both confidence and a clear understanding of what it takes to protect the financial system at national and global levels.
One of the most important tasks you oversaw upon your appointment was ensuring the country was not greylisted after it moved above the threshold last year, a move that secured a major boost to the country’s standing within the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). What did this mean for you personally, and why was it important for the country?
Ensuring that Eswatini was not greylisted was one of the most defining responsibilities of my first year in office. On a personal level, it was both humbling and motivating. It reaffirmed why strong institutions and disciplined leadership matter. Knowing that the work we were doing had a direct impact on the country’s financial stability, investor confidence, and global credibility made the task even more meaningful. It was a reminder that leadership is about safeguarding the nation’s interests and strengthening systems that will outlast us. For the country, avoiding grey listing was critical. Greylisting carries wide-ranging consequences: reduced investor confidence, increased costs of doing business, delays in cross-border transactions, and heightened scrutiny for local banks and businesses. It affects ordinary citizens, not just financial institutions. Protecting Eswatini from those risks was essential for maintaining economic continuity and preserving our reputation within the international community.
Equally important, our progress signalled to ESAAMLG and the broader global AML/CFT community that Eswatini is committed to reform, transparency, and meeting international standards. It showed that we are strengthening our systems not because we are compelled to, but because it is the right thing to do for our country’s long-term stability. So, for me, this achievement was both personal and national. It demonstrated what can be accomplished when institutions collaborate with purpose and reinforced EFIC’s role as a guardian of financial integrity.
The Centre recently released the first-ever Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Typology Report, which cited tax evasion and corruption as highly prevalent in the country. What other key issues did you identify in the study?
Beyond tax evasion and corruption, the Typology Report highlighted several other critical risks affecting Eswatini’s financial integrity. One of the most concerning issues identified was the increasing use of third‑party accounts and nominees, including minors, to conceal the true ownership of illicit funds. The study revealed cases in which children’s bank accounts were used to receive large sums linked to undisclosed business activity. This tactic enables criminals to hide beneficial ownership, avoid scrutiny, and manipulate reporting thresholds. The report also pointed to growing patterns of layering and cross‑border movement of illicit funds, where criminals move money through multiple accounts or jurisdictions to obscure its origins. This underscores the sophistication of some schemes and highlights the need for continuous enhancement of monitoring and detection capabilities.
Another recurring theme was the misuse of family members and close associates to facilitate suspicious transactions. This not only frustrates investigative efforts but also exposes vulnerable individuals, including children, to financial and legal risks. These findings reinforce the importance of strengthening customer due diligence, improving beneficial‑ownership transparency, and deepening collaboration across all reporting entities. They also reflect the evolving nature of financial crime in Eswatini and the need for sustained vigilance.
The Ministry of Finance’s Second Quarter Performance Report 2022/23 revealed that E990 million may have been laundered in the country. What systems and mechanisms is the Centre putting in place to address these issues?
To address the vulnerabilities, EFIC has strengthened the national AML/CFT architecture across several fronts. Key reforms include tightening the legal and regulatory framework through amendments that introduce stronger, risk-based obligations for reporting entities, while also modernising analytical systems to enhance the Centre’s ability to detect and analyse suspicious financial activity. These upgrades have been complemented by improvements in interagency coordination, with closer collaboration among the Central Bank, law enforcement agencies, and supervisory authorities to ensure a more unified, intelligence-driven response to financial crime.
In addition, EFIC has expanded capacity-building programmes to equip banks, DNFBPs, and other reporting sectors with the skills needed to identify and mitigate risks more effectively. The Centre is also leveraging insights from the 2023 National Risk Assessment, which highlighted gaps such as misuse of identity documents and weak beneficial ownership transparency, to guide a more risk-informed national strategy. Together, these mechanisms form stronger laws, improved analytics, deeper collaboration, and a better understanding of national risk, forming a comprehensive and proactive system aimed at preventing illicit financial flows and safeguarding the country’s financial integrity.
*To read the full article, please download Inside Biz Magazine Issue 17 on Pressreader.