Crypto ATM / kiosk operator in Eswatini

AML/CFT Registration: Eswatini, as a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), is committed to implementing FATF standards. This typically means that VASPs, including those providing custody, are required to be registered or licensed with the FIU or a designated authority for AML/CFT compliance. This registration focuses on identifying the VASP, its beneficial owners, and ensuring it has robust AML/CFT policies and procedures.

Prevention of Organised Crime Act (POCA) & FIU Act: The primary legislation addressing AML/CFT in Eswatini includes the Prevention of Organised Crime Act and the Financial Intelligence Unit Act. These acts, along with their accompanying regulations, are the most likely place where definitions of "virtual assets" and "VASPs" and their reporting obligations would be found. While specific details on custody per se might be absent, the entity providing custody would be subject to VASP AML/CFT obligations.

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.

United Nations (UN) Sanctions:

Key UN Sanctions Lists:

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

Outcome: Cautioned the public about the risks of virtual assets, stated that they are not legal tender, and advised financial institutions to exercise extreme caution in dealing with virtual assets, warning that they are not currently regulated in Eswatini.

Date: January 28, 2021 (This statement set the initial tone for recent years)

Ongoing Discussions and Regulatory Development

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

Central Bank of Eswatini (CBE) - Warnings: The CBE has previously issued notices warning the public about the risks associated with virtual currencies, including their speculative nature, volatility, lack of regulatory oversight, and potential use in illicit activities. These notices typically state that virtual currencies are not recognized as legal tender in Eswatini and are not regulated by the CBE.