Illegal online gambling risks FATF greylisting for Eswatini

Illegal online gambling activities in Eswatini could expose the country to greylisting by the Financial Action Task Force (FATF), posing significant risks to its financial stability and global reputation. The warning was issued by the Ministry of Finance, as reported by the Times of Eswatini.

The disclosure emerged in response to an urgent High Court application by XWIN (Proprietary), which is seeking the reopening of its offices at Madlenya House and the return of equipment seized during a police investigation. Authorities allege that the company was involved in unlawful online gambling linked to a transnational scam commonly referred to as “pig butchering.”

The investigation led to the arrest of the company’s Managing Director, Nhlanhla Tsabedze, who has been released on E5,000 (US$292.50) bail, along with several foreign nationals. Approximately 150 individuals from East Asia, Southeast Asia and South America have been charged and are awaiting trial, with a majority reportedly originating from Mainland China.

In an affidavit submitted to the court, Acting Principal Secretary in the Ministry of Finance Nkululeko Dlamini warned that FATF greylisting would restrict access to international financial markets, increase the cost of doing business and deter foreign investment. He stressed that failure to address financial crimes could slow economic growth and undermine investor confidence. 

Dlamini further highlighted that transnational crimes such as money laundering and terrorist financing pose serious threats to national security, governance and economic stability. He noted that Eswatini was assessed in 2022 as having weaknesses in its anti-money laundering and counter-terrorism financing frameworks, placing it under heightened international scrutiny.

The government has pledged to act decisively to curb illegal online gambling and strengthen regulatory oversight to safeguard the nation’s financial integrity.