Yes.
Attached is a image I took from the picture reference here, note that these swp45 sheet metal rifles have a two piece arrangement for the sight base. One piece that is the actual rear sight fits all the way reward where the regular style sight base would have the alignment screw. The second piece of the sheet metal sight is actually just a handguard retainer. This is the piece I drew a arrow pointing at. Your rifle has this same piece with the lip for the handguard ground off, or they just made a seperate sheet metal collar that slips over the step in the barrel. Either way your rifle is perfectly safe as far as this goes. If you don't believe me, feel free to heat it up with a torch and watch both pieces of sheet metal slide down the barrel.
Glad you brought this conversation up, invariably someone else will come across this phenomenon and hopefully they run across this post! By the way, Neat rifle.