Swazi Central Bank issues stern warning to money launderers

In an effort to curb money laundering in the country, the Central Bank of Swaziland (CBS) is imploring customers of financial institutions to furnish these with information confirming proof of residence.

In a press release issued by Head of Corporate Communications Sibusiso Mngadi, the CBS, in conjunction with local banks and the Swaziland Building Society, issued a warning to customers who were not adhering to the requirements of the Money Laundering (Prevention) Act of 2001.

"In terms of the 'Know Your Customer' requirement in guidelines issued by the Central Bank in 2002, customers are required to furnish certain information to confirm proof of residence to complete their account details in the files of their bankers," the statement read.

Mngadi added that customers who had not satisfied this requirement were required to submit the requested information as soon as possible and no later than March 31, 2009.

He added that customers who failed to provide the requested information risked reduction to access the full services of their financial institutions.

"The Act was a response to the knowledge that banks and other financial institutions may be unwittingly used as intermediaries for the transfer or deposit of funds derived from criminal activity," he explained.

Adding, Mngadi said it was understood that criminals and their associates use the financial system to make payments and transfers of funds from one account to another to hide the source and beneficial ownership of money as well as to provide storage for bank notes through safe-deposit facilities.

"In line with the Act, the Central Bank of Swaziland issued a circular to all financial institutions calling upon them to institute effective procedures to establish the identity of their customers," he said, adding: "the circular insists that prospective customers be interviewed personally and positive identification be obtained."

He urged customers to adhere to the requirements of the Act by providing the required information to their financial institutions before the deadline.

Source: The Swazi Observer