Crypto ATM / kiosk operator in Eswatini

Eswatini operates no virtual-asset licensing regime: neither the Central Bank of Eswatini nor the Financial Services Regulatory Authority licenses virtual asset service providers, and the only hook is AML-side, created by the Anti-Money Laundering, Counter-Financing of Terrorism and Counter-Proliferation Financing (Miscellaneous Amendments) Act 2024, which directs supervisory authorities to establish a framework to regulate VASPs and under which VASPs are treated as accountable institutions registering with the Eswatini Financial Intelligence Centre.

Eswatini's primary AML/CFT statute is the Money Laundering and Financing of Terrorism (Prevention) Act, 2011 (Act 6 of 2011), as amended by Act 5 of 2016, whose section 19 establishes the financial intelligence body first named the Swaziland Financial Intelligence Unit and now operating as the Eswatini Financial Intelligence Centre; Eswatini has no Financial Intelligence Unit Act, the Prevention of Organised Crime Act 2018 deals with organised crime and confiscation rather than accountable-institution duties, and the 2011 Act as consolidated carries no definition of virtual assets, VASPs, cryptocurrency or digital currency.

Specific amendments or regulations under these Acts defining VASPs and their obligations would need to be consulted.

FATF Recommendations: Eswatini, through its membership in ESAAMLG, is expected to continue enhancing its legal framework to fully comply with FATF Recommendation 15 on new technologies and Virtual Asset Service Providers (VASPs). This implies that future amendments or new regulations could introduce more specific requirements for VASPs, which might eventually encompass more detailed aspects of custody.

Recommendation 15 (New Technologies): Specifically applies AML/CFT obligations to VASPs, including the obligation to implement sanctions screening.

Recommendation 6 (Targeted Financial Sanctions): Requires countries to implement targeted financial sanctions related to terrorism and WMD proliferation without delay.

Evidence fact sz.aml.united-nations-un-sanctions not found (may have been renamed).

Evidence fact sz.aml.key-un-sanctions-lists not found (may have been renamed).

Jurisdictional Nexus: A VASP in Eswatini becomes subject to OFAC sanctions if:

The Central Bank of Eswatini's 2023 notice 'Considerations for Dealing in Cryptocurrencies' states that cryptocurrencies 'do not exist physically and have no legal tender status in Eswatini' and that 'crypto investments or assets are currently unregulated in Eswatini; therefore, investors do not benefit from the legal protection associated with regulated instruments or products'. It is a consumer warning addressed to the public that directs readers to verify a provider's licence with the Central Bank of Eswatini and the Financial Services Regulatory Authority; it contains no directive to financial institutions and imposes no obligation.

The Central Bank of Eswatini issued no cryptocurrency or virtual-asset statement on 28 January 2021. Its published crypto communications are an April 2018 announcement that the Bank was researching cryptocurrency, and the 2023 notice 'Considerations for Dealing in Cryptocurrencies', which states that cryptocurrencies have no legal tender status in Eswatini and that crypto investments or assets are currently unregulated.

Ongoing Discussions and Regulatory Development

Entity Targeted: General Public (warnings) / Financial Institutions (guidance). Violation Type: N/A (warnings, not enforcement).

The Central Bank of Eswatini's notice 'Considerations for Dealing in Cryptocurrencies' states that cryptocurrencies are not legal tender in Eswatini and that crypto investments or assets are currently unregulated, so investors do not get the legal protection attaching to regulated products; the notice is a consumer warning and creates no prohibition, licence or registration duty.