The Exchange Control Division is charged with exchange control functions and duties delegated to the Central Bank of Swaziland in terms of Section 48 (Agent for the administration of Exchange Control) of the Central Bank of Swaziland Order, 1975. The enabling legislation is the Exchange Control Order, 1974 and the Exchange Control Regulations issued under Legal Notice No.2 of 1975.
The Central Bank’s mission through the Exchange Control Division is to administer foreign exchange through Authorized Dealers and communicate from time to time the exchange control Regulations, policies and rulings to these Authorised Dealers and also give exchange control advice to investors and the public in terms of the Central Bank’s mandate to act as Government agent in the administration of all laws relating to foreign exchange control.
The Exchange Control Division’s main goal is to ensure that foreign exchange earned from export of goods and services, tourism and other sources is used to the best advantage of the country as a whole.
The Division Seeks to Achieve Its Mission or Purpose Through:
- Interpretation of Regulations and Rulings to Authorized Dealers, the public and investors; and reviewing such rulings from time to time by issuing circulars to the Authorized Dealers.
- Analysing and processing of foreign exchange applications submitted by the Authorized Dealers for transactions beyond their mandate.
- Analysing all foreign exchange returns submitted by the banks daily, monthly and quarterly to ensure that guidelines and rulings are adhered to with a view to enforcing Exchange Control Regulations (off-site inspection).
- Conducting exchange control on-site inspections by visiting branches of Authorized Dealers to enforce compliance and bring irregularities, if any, to the attention of the Authorized Dealer concerned for corrective action to be taken.
- Conduct exchange control seminars and workshops to Authorized Dealers.
- Analysing and compiling reports on the inflows and outflows of foreign exchange in the country initiating policy changes where required.
- Exchange of information through questionnaires from regional and international organizations on exchange control matters and through weekly/quarterly meetings with relevant government ministries and CMA member countries respectively.
Anti-Money Laundering Activities
In a bid to combat money laundering in terms of the Money Laundering (Prevention) Act, 2001, it is Central Bank’s responsibility through this Division to ensure that all accountable institutions are cognizant of the general principles and guidelines with regard to money laundering in order to deter and detect money laundering activities thereby preventing abuse of the financial system by money launderers.
Under supervision of the Central Bank, accountable institutions are required to set up internal control measures which include the appointment of a Money Laundering Reporting Officer, Account opening documentation, On-going monitoring of transactions, keeping records for five years, continuous training of all employees, functioning internal audit department and reporting of suspicious transactions.
The Central Bank has established an independent Financial Intelligence Unit which is responsible for receipt of these suspicious transactions reports for onward submission to Law Enforcement for investigation and eventual prosecution.
The Exchange Control Division reports to the Board of Directors on a monthly basis and the report details the inflow and outflow of foreign exchange in Swaziland.