Custodial wallet / SaaS 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.

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:

U.S. Sanctions (OFAC):

Legal Basis in Eswatini: Eswatini's AML/CFT laws, notably the Prevention of Organised Crime Act, 2018, and the Money Laundering and Financing of Terrorism (Prevention) Act, 2011 (as amended), mandate compliance with these international obligations. The Financial Intelligence Unit (FIU) of Eswatini is responsible for ensuring the implementation of these measures.

Security Tokens: These are tokens explicitly designed to represent traditional financial instruments.

Licensed Trading Platforms: Trading would likely need to occur on an exchange or platform licensed and regulated by the FSRA as a securities exchange. Unregulated trading platforms would be illegal for securities.

Prospectus Requirements: For public offerings of securities, a comprehensive prospectus must be prepared and registered with the FSRA. This prospectus must disclose all material information relevant to the investment, risks, and the issuer.

Licensing: Issuers, promoters, or financial intermediaries involved in offering or distributing securities may need to be licensed by the FSRA as financial services providers (e.g., investment advisors, brokers, collective investment scheme managers).

Certain Utility Tokens: While typically designed to provide access to a product or service, a utility token can be reclassified as a security if:

Certain NFTs (Non-Fungible Tokens): While most NFTs are unique digital assets, they can be considered securities if:

Central Bank of Eswatini (CBE) Public Statement on Virtual Assets (Cryptocurrencies)

Evidence fact sz.enforcement.central-bank-of-eswatini-cbe-public-statement-on-virtual-assets-cryptocurrencies not found (may have been renamed).

Ongoing Discussions and Regulatory Development

General reference to their policy/stance: While not a direct enforcement action, the CBE's consistently cautious stance is reiterated in various publications. For instance, their financial stability reports or governor's statements would reflect this. A common search result for their crypto stance points to articles referencing their long-standing cautionary approach.