By Kwanele Dhladhla
The discussions on Artificial Intelligence (AI) in central banking, digital currencies, and cross-border payments show a progressive approach to financial innovation which ultimately protects illicit financial flows.
This was one of the key issues which was extensively deliberated upon by governors from the Common Monetary Area (CMA) – comprising Eswatini, Lesotho, Namibia, and South Africa who convened on Friday to deliberate on economic issues affecting the region.
The meeting, chaired by Central Bank of Eswatini (CBE) Governor, Dr. Phil Mnisi, covered various topics, including artificial intelligence in central banking, central bank digital currencies, and cross-border payment developments.
RELATED: CBE calls for familiarization with the new E50 commemorative note
The governor’s meeting was preceded by the CMA Central Bank Senior Officials’ meeting, which investigated issues affecting the region and how to collectively assist the Central Banks in achieving their mandates.
“This is a great initiative by the CMA Governors, strengthening cooperation on key economic issues that affect the region. Such gatherings build economic ties and support regional financial stability,” said Richard Nkhosi.
CMA country issues their own currencies in (the Namibian dollar, Lilangeni, and Lesotho loti). However, all of them were linked to the South African Rand. The Rand serves as legal tender that remains widely used and accepted in the member countries.
A Financial Expert Commentator and Economist Donovan Strydom said financial crimes had emerged as a significant global challenge, jeopardising economic stability, corporate integrity and individual financial security.
“As digital transactions and financial technologies advance, criminals, organised networks and corrupt officials increasingly exploit system vulnerabilities to engage in illicit activities such as money laundering, embezzlement, cyber fraud and corruption.
These crimes extend beyond financial losses, damaging investor confidence, inflating the cost of doing business, and weakening regulatory frameworks,” he said.
He mentioned that financial crimes had become more sophisticated and widespread due to the rapid expansion of digital banking, e-commerce and decentralised financial systems.
“Criminals leverage emerging technologies such as artificial intelligence (AI), cryptocurrency and deepfake technology to commit fraud and circumvent financial controls,” Strydom explained.
He added that financial crimes, ranging from money laundering to cyber fraud and corruption, were major obstacles to economic stability worldwide, including in Eswatini.
RELATED: CBE Graduate Trainee Programme aptitude tests in motion
“The rapid advancement of digital finance has both increased accessibility and exposed vulnerabilities that criminals continue to exploit.
Addressing these threats requires a multi-pronged approach—strengthening regulatory frameworks, investing in technology, enhancing international cooperation, and fostering public awareness.
By taking decisive action, governments, businesses, and individuals can mitigate financial crimes, ensuring economic stability and security,” Strydom concluded.
