MBABANE:Felicia Dlamini-Kunene,the Deputy Governor of the Central Bank of Eswatini(CBE) says Central Banks in various countries must strike a balance between financial inclusion and safeguarding the financial system against money laundering and financing of terrorism, the financial institution’s online platforms reported on Thursday.
Speaking at the ongoing Central Banking Spring Meetings in Cape Town, the Deputy Governor stressed that without this balance, efforts to fight financial crime may exclude legitimate businesses and consumers, driving them into the shadows and exacerbating the very problems they seek to resolve.
Conversely, effective financial inclusion, when done right, should strengthen Anti-Money Laundering and Countering the Financing of Terrorist (AML/CFT) efforts.
“By bringing more people into the formal financial system, countries can increase transparency and reduce the space for illicit activities. Similarly, robust (AML/CFT) controls, when implemented thoughtfully, can build trust and confidence, encouraging greater financial participation,” she said.
Central Bank Deputy Governor Felicia Dlamini-Kunene urges countries to strike a balance between financial inclusion and suppression of terrorism, says regulations must not undermine legitimate business activities.