…..Suspected Transactions include Money Laundering, Tax Evasion, Drug trafficking
……Fintech services reported the highest potential money laundered
BY MBONGENI NDLELA
MBABANE – About 1 157 suspicious transactions amounting to over E527 million have been reported to the Eswatini Financial Intelligence Unit (EFIU) within a period of three months.
The total amount, which is listed as potential laundering, was reported between April to June 2024 and is E527 089 042.95.
According to the first quarter Performance Report of the Ministry of Finance submitted in parliament, the 1 157 Suspicious Transaction Reports (STRs) were reported to the EFIU by Accountable Institutions (AIs). An accountable institution is defined as a person, or an organisation referred to and listed in Schedule 1 of the FIC Act that carries on the business of any entity.
The EFIU is tasked with receiving (STRs) from (AIs), analyzing them using information from its database and other databases, and disseminating intelligence to Law Enforcement Agents (LEAs).
The LEAs include the Royal Eswatini Police Service (REPS), the Anti-Corruption Commission (ACC) and the Eswatini Revenue Service (ERS).
The report states that of the 1,157 STRs received, the EFIU produced a total of 11 reports, both proactive/spontaneous as well as reactive requests dissemination, to law enforcement agencies.
It is said that this number included four proactive/ spontaneous disseminations.
“Of these, three were sent to ERS, one went to REPS,” the report states.
It continued: “The EFIU received a total of 14 requests for financial intelligence from law enforcement and seven reactive reports were sent back to law enforcement agencies and these included one sent to ERS, one sent to REPS, and five sent to ACC during the quarter. The financial intelligence information resulted in a total disseminated amount of E54 467 604 for investigation by LEAs. Moreover, the EFIU sent two requests for financial intelligence to other FIUs. Subsequently, the EFIU received one response to these requests.”
On another note, the report has stated that the EFIU continued to receive cash threshold transaction reports from accountable institutions in the first quarter.
Cash Threshold Reports (CTRs) are statutory reports containing any cash traction (deposit or withdrawal) equal to or above SZL 15 000 either as a single transaction or an aggregated transaction in 24 hours.
From April 2024 to June 2024, EFIU received 87 747 CTRs, with a transaction amount of E3 317 233 738.93.
Below is an overview analysis of the trends from the STRs received during the quarter:
1. Tax Evasion cases showed a decrease in the current quarter, with 138 STRs with an element of Tax Evasion being reported during the period and potential money laundered amounting to SZL 307,212,040.51, which is higher than the previous quarter.
2. Money laundering-related cases reported during the period were 98, with potential money laundering amounting to SZL 60, 646,542.94.
3. Drug Trafficking was also one of the highest reported offences during the period under review with 47 STRs and a potentially laundered amount of SZL 127,761,287.28.
4. Fintech services reported the highest potential money laundered amount during the last quarter, amounting to SZL 433,875,354.54.
