Central Bank of Swaziland

Financial Regulation Department

The Financial Regulation department is an agent for the administration of Exchange control. It administers foreign exchange through Authorized Dealers and communicates Exchange Control Regulations, policies and rulings to authorized dealers. It gives exchange control advise to investors and public and ensures that foreign exchange earned from exports of goods and services, tourism and other sources is used to the best advantage of the country.

FUNCTIONS

  1. BANK SUPERVISION

    The Bank Supervision division carries the responsibility of licensing, regulating and supervising banks and other financial institutions in Swaziland. Regulation refers to enforcement of compliance with the framework with which financial institutions are licensed to operate by the bank. Licensed institutions are subject to prudential rules and regulations. Supervision entails the process of monitoring the control systems, activities and financial conditions of banks in order to ensure that these are operated in a safe and sound manner.

  2. EXCHANGE CONTROL

    The Exchange Control division administers exchange controls on behalf of the Minister of Finance, in terms of delegated authority. The division’s main functions are to implement, administer and monitor the provisions of the exchange controls regulations, as well as to collect, analyse and disseminate information relating to exchange control and cross border foreign exchange transactions. The authorised dealers in foreign exchange (Banks) carry out the day to day administration of exchange controls, thus dealing directly with the public. Swaziland earns foreign exchange when it sells good and services to countries outside the Common Monetary Area (CMA) and uses foreign exchange when it pays for foreign goods and services. Since Swaziland is highly dependent on imported goods and services, it is necessary to ensure that whatever foreign exchange that is earned from exports, tourism and other sources is used to the best advantage of the country. Exchange control plays a major role in helping to achieve this important goal.

  3. ENFORCEMENT

    This is a new Division within Financial Regulation responsible for policy development. It deals with the enforcement of regulatory tools, i.e. FIA, 2005, CBS Order, 1974, AML/CFT Act, 2011 and other secondary legislations.

  4. FINANCIAL STABILITY

    This is another new unit, formed in 2009 responsible for ensuring Financial Sector Stability. It looks at Soundness of Financial Institutions and early warning indicators. The unit is mandated to conduct macro prudential surveillance of the financial system in Swaziland. Among its objectives, the unit will assess the robustness and efficiency of the financial system and engage the relevant takeholders to strengthen the regulatory environment. This collaboration is envisaged to inform policy makers on appropriate intervention and sanctions with respect to financial stability.

  5. ANTI-MONEY LAUNDERING

    Money Laundering is governed by Money Laundering and Financing of Terrorism (Prevention) Act, 2011. It ensures that all accountable institutions are cognizant of the general principles and guidelines relating to money laundering. The Ministry of Finance tasked the Central Bank with the responsibility to ensure that all banks are cognizant of the general principles and guidelines with regard to money laundering and terrorist financing in order to deter and detect money laundering and terrorist financing activities, thereby preventing abuse of the financial system by money launderers and terrorists. Under the supervision of the Central Bank, commercial banks are required to set up internal control measures in order to combat these activities.