The Central Bank of Eswatini (CBE) has issued a strong warning to members of the public, government entities, and stakeholders against engaging with or promoting an entity calling itself Eswatini New Fund Asset Depositor (AD).
The entity is also referred to as The Financial Institution (TFI), and has associated promoters, including Green City Developers.
According to the bank, these parties have been circulating materials promoting what they describe as an Eswatini New Fund 3.0, alongside claims of a purported USD1 billion currency swap arrangement with the Central Bank.
The materials further allege that the scheme is capable of generating returns of up to 10% of weekly revenue over a period of 40 weeks.
In addition, the claims misleadingly assert that the Central Bank governor would serve as a key signatory to a final contract linked to the arrangement.
However, the bank has firmly rejected these claims, stating that they are entirely false and without any basis.
“The bank wishes to unequivocally state that all these claims are false, misleading and without any foundation,” said Governor of the Central Bank Phil Mnisi.
The CBE clarified that it has not entered into any agreement, memorandum, or arrangement with the so-called Asset Depositor, The Financial Institution, Green City Developers, or any affiliated party in relation to a currency swap, blocked funds, bond trading revenues, or any similar scheme.
It further emphasised that any suggestion that the governor has committed to signing such a contract is untrue.
The bank also reminded the public of the provisions of the Financial Institutions Act, 2005, which stipulate that no individual or entity is permitted to conduct banking business or accept deposits from the public in Eswatini without a valid license issued by the Central Bank.
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It stressed that operating or marketing such financial services without proper authorisation is unlawful and subject to enforcement action.
In light of the circulating materials, the CBE has urged all stakeholders to remain vigilant and exercise caution when approached with unlicensed, speculative, or unrealistic investment offers, particularly those that claim to involve government or the Central Bank.
The bank further assured the public that it is actively monitoring the situation, including the circulation of the materials and any related activities that may contravene regulatory requirements.
These include unauthorised deposit-taking, misrepresentation, and other forms of unlawful conduct.
To safeguard the integrity of the financial system and protect the public, the Central Bank said it will continue working closely with sister regulators and relevant law enforcement agencies to address the matter.
