Through the Financial Surveillance and Integrity function, the Bank oversees Authorized Dealers in foreign exchange (ADs) while enforcing compliance with Exchange Control and Anti Money Laundering and Combating of Financing of Terrorism (AML/CFT) laws.
Exchange Control Regulations in Lesotho
The Central Bank of Lesotho (CBL) plays a crucial role in managing exchange control regulations within the country. These regulations aim to facilitate cross-border trade and promote Lesotho’s position as a liberal open economy.
The Common Monetary Area (CMA) countries; Republic of South Africa (RSA), Eswatini, Namibia, including Lesotho, have been gradually liberalizing exchange control regulations. RSA leads in liberalization due to its more developed capital and financial markets.
Lesotho’s exchange control status is comparable to that of Namibia and Eswatini, with narrow gaps in certain transactions.
AML-CFT in Lesotho: Safeguarding Financial Integrity
The Central Bank of Lesotho (CBL) is committed to ensuring the integrity and stability of Lesotho’s financial system. As part of this mission, the CBL oversees the implementation of robust AML-CFT regulations. These regulations aim to prevent money laundering and the financing of terrorism by enhancing transparency, accountability, and risk management within the financial sector.
The CBL’s Regulation on AML-CFT mandates financial institutions to conduct risk assessments on new products, services, and technology. Institutions must identify all ML/TF risks and establish effective mitigation procedures.
