Administrative sanctions imposed on banks in terms of the Financial Intelligence Centre Act 38 of 2001 (FIC Act), as amended since 2014

Public statements issued in terms of section 45C(11) of the FIC Act 

 

References to ‘section(s)’ and ‘regulation(s)’ in this document invariably refer to section(s) and regulation(s) of the FIC Act and the Money Laundering and Terrorist Financing Control Regulations (the Regulations)

 

 No

Bank

Date of SARB media release

Administrative Sanction

Details pertaining to non-compliance with the provisions of the FIC Act

1

Absa Bank Limited

2014-04-16

A financial penalty of R10 million, a reprimand and a directive to take remedial action

• Section 21: Know-your-customer • Section 22: Record keeping • Section 42: Internal rules (inadequate processes and working methods to detect and report suspicious and unusual transactions in terms of section 29)

2

FirstRand Bank Limited

2014-04-16

A financial penalty of R30 million, and a directive to take remedial action

• Section 21: Know-your-customer • Section 22: Record keeping

• Section 42: Internal rules (inadequate processes and working methods to detect and report suspicious and unusual transactions in terms of section 29)

3

Nedbank Limited

2014-04-16

A financial penalty of R25 million, and a directive to take remedial action

• Section 21: Know-your-customer • Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A)

4

The Standard Bank of South Africa Limited

2014-04-16

A financial penalty of R60 million, and a directive to take remedial action

• Section 21: Know-your-customer • Section 28: Cash threshold reporting • Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A) • Section 42: Internal rules (inadequate processes and working methods to detect and report suspicious and unusual transactions in terms of section 29)

5

Capitec Bank Limited

2015-02-20

A financial penalty of R5 million and a directive to take remedial action

• Section 28: Cash threshold reporting

6

Deutsche Bank AG

2015-02-20

A financial penalty of R10 million and a directive to take remedial action

• Section 21: Know-your-customer • Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A)

7

GBS Mutual Bank

2016-08-05

A financial penalty of R500 000, a reprimand and a directive to take remedial action

• Section 21: Know-your-customer • Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A) • Section 43a: Training of employees on the FIC Act

8

Habib Overseas Bank Limited

2016-08-05

A financial penalty of R1 million and a directive to take remedial action

• Section 42: Internal rules (inadequate processes and working methods to detect and report suspicious and unusual transactions in terms of section 29)

9

Investec Bank Limited

2016-08-05

A financial penalty of R20 million and a directive to take remedial action

• Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A)

10

Standard Chartered Bank (Johannesburg Branch)

2016-08-05

A financial penalty of R10 million, a reprimand and a directive to take remedial action

• Section 21: Know-your-customer • Section 28: Cash threshold reporting

11

The South African Bank of Athens Limited

2016-08-05

A financial penalty of R3 million, a reprimand and a directive to take remedial action

• Section 21: Know-your-customer • Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A)

12

Société Générale Johannesburg Branch (Socgen)

2016-12-15

A financial penalty of R2 million and a directive to take remedial action. The financial penalty of R2 million is suspended for a period of two years from 27 October 2016, subject to Socgen adhering to certain conditions imposed by the SARB.

• Section 21: Know-your-customer • Section 22: Record keeping

13

Absa Bank Limited

2016-12-15

A financial penalty of R10 million and a directive to take remedial action

• Section 42: Internal rules (inadequate processes and working methods to detect and report suspicious and unusual transactions in terms of section 29)

14

VBS Mutual Bank (VBS)

2017-08-04

A financial penalty of R2.5 million and a directive to take remedial action. R2 million of the financial penalty is suspended for a period of one year from 7 June 2017, subject to VBS adhering to certain conditions imposed by the SARB.

• Section 21: Know-your-customer • Section 28: Cash threshold reporting • Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A) • Section 42: Internal rules (inadequate processes and working methods to detect and report suspicious and unusual transactions in terms of section 29)

15

China Construction Bank - Johannesburg Branch (CCB)

2018-02-02

A financial penalty of R75 million and a directive to take remedial action. R20 million of the financial penalty is suspended for a period of three years from 28 November 2017, subject to CCB adhering to certain conditions imposed by the SARB.

• Section 21: Know-your-customer • Section 22: Record keeping • Section 28: Cash threshold reporting • Section 29: Suspicious and unusual transaction reporting • Section 42: Internal rules (inadequate processes and working methods to detect and report property associated with terrorist and related activities in terms of section 28A)

16

HSBC Bank Plc Johannesburg Branch (HSBC)

2018-11-09

A financial penalty of R15 million and a directive to take remedial action. R7.5 million of the financial penalty is suspended for a period of three years from 6 November 2018, subject to HSBC adhering to certain conditions imposed by the SARB.

• Section 42: Internal rules (inadequate processes and working methods to detect and report suspicious and unusual transactions in terms of section 29)

17

Bidvest Bank Limited

2019-03-15

A financial penalty of R5.250 million

• Section 28: Cash threshold reporting

• Section 43(a): Training on the Financial Intelligence Centre Act and the accountable institutions internal rules

18

Sasfin Bank Limited

2019-07-30

A financial penalty of R500 000

• Section 43(a): Training on the Financial Intelligence Centre Act and the accountable institution’s internal rules

19

Bank of Baroda, South Africa

2019-08-06

A financial penalty of R400 000

• Section 28: Cash threshold reporting

20

The Standard Bank of South Africa Limited

2019-12-20

A financial penalty of R30 million and directive to take remedial action. R7.5 million of the R30 million financial penalty is, however suspended, in terms of section 45C(4)(c), for a period of three (3) years from 25 September 2019, subject to The Standard Bank of South Africa Limited adhering to certain conditions imposed by the SARB.

• Regulation 24(3) read with Regulation 29(7): Suspicious and unusual transaction

21

Bank of China

2019-12-20

A financial penalty of R2 million and directive to take remedial action.

The financial penalty of R2 million is, however suspended, in terms of section 45C(4)(c) of the FIC Act, for a period of three (3) years from 21 August 2019, subject to Bank of China - Johannesburg Branch adhering to certain conditions imposed by the SARB.

• Section 28: Cash threshold reporting

22

GroBank Limited (formerly known as South African Bank of Athens Limited

2019-12-20

A financial penalty of R 5 million and caution not to repeat.

The financial penalty of R5 million was, however suspended for a period of three (3) years from 13 August 2019, subject to GroBank Limited adhering to certain conditions imposed by the SARB.

• Section 28: Cash threshold reporting • Section 29: Suspicious and unusual transaction reporting

• Section 43(a): Training on the Financial Intelligence Centre Act and the accountable institution's internal rules (referred to as the risk management and compliance programme in Financial Intelligence Centre Amendment Act 1 of 2017)

23

Ubank Limited

2019-12-20

A financial penalty of R500 000 and a directive to take remedial action.

A caution not to repeat the conduct which led to non-compliance, and a reprimand are the administrative sanctions imposed for deficiencies relating to sections 43(a) and 43(b) respectively.

• Section 28: Cash threshold reporting • Section 43(a): Training on the Financial Intelligence Centre Act and the accountable institution's internal rules (referred to as the risk management and compliance programme in Financial Intelligence Centre Amendment Act 1 of 2017) • Section 43 (b): Appointment of a Compliance Officer

24

HBZ Bank Limited

2019-12-20

A caution not to repeat the conduct which led to non-compliance.

• Regulation 24(3) read with regulation 29(7): Suspicious and unusual transaction reporting • Section 43(a): Training on the Financial Intelligence Centre Act and the accountable

institution's internal rules (referred to as the risk management and compliance programme in Financial Intelligence Centre Amendment Act 1 of 2017)

25

 

 

 

Deutsche Bank AG - Johannesburg Branch 2021-04-01

A financial penalty of R38 million and a caution not to repeat the conduct which led to the non-compliance.

R10 million of the R38 million financial penalty is, however suspended, in terms of section 45C(4)(c) of the FIC Act, for a period of three (3) years from 26 February 2021, subject to Deutsche Bank AG adhering to certain conditions imposed by the SARB.

 

• Sections 21: Identification of clients and other persons • sections 22 to 24: Duty to keep record • Section 42:Risk management and compliance programme

 

Administrative sanctions imposed on life insurers in terms of the Financial Intelligence Centre Act 38 of 2001 (FIC Act), as amended since 2019

Public statements issued in terms of section 45C(11) of the FIC Act

 

References to ‘section(s)’ and ‘regulation(s)’ in this document invariably refer to section(s) and regulation(s) of the FIC Act and the Money Laundering and Terrorist Financing Control Regulations (the Regulations)

 

 No

Bank

Date of SARB media release

Administrative Sanction

Details pertaining to non-compliance with the provisions of the FIC Act

1

Clientele Life Assurance Company Limited

2020-07-03

A financial penalty of R200 000 and a caution not to repeat the conduct which led to non-compliance.

• Section 28: Cash threshold reporting

2

Hollard Life Assurance Company Limited

2020-07-03

A caution not to repeat the conduct which led to non-compliance.

• Section 43: Training relating to anti-money laundering and counter terrorist financing compliance

 

3

Outsurance Life Limited

2020-07-03

A caution not to repeat the conduct which led to non-compliance.

• Section 43: Training relating to anti-money laundering and counter terrorist financing compliance

4 Discovery Life Limited 2021-04-01

A financial penalty of R2 million and a caution not to repeat the conduct which led to the non-compliance.

R500 000 of the R2 million financial penalty is, however suspended, in terms of section 45C(4)(c) of the FIC Act, for a period of three (3) years from 26 February 2021;

• Sections 28: Cash transactions above prescribed limit

• Section 42: Risk management and compliance programme

• Section 43: Employee training relating to anti-money laundering and counter financing of terrorism compliance

• Section 42A(2): Governance of anti-money laundering and counter financing of terrorism compliance