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Administrative sanctions
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 |
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 |
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 |
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 |
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 |
A financial penalty of R5 million and a directive to take remedial action |
• Section 28: Cash threshold reporting |
|
6 |
Deutsche Bank AG |
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 |
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 |
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 |
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) |
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 |
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) |
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 |
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) |
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) |
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) |
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 |
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 |
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 |
A financial penalty of R400 000 |
• Section 28: Cash threshold reporting |
|
20 |
The Standard Bank of South Africa Limited |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
| 5 | Fedgroup Life Limited | 2021-09-17 | A financial penalty of R140 000, a directive to take remedial action and a caution not to repeat the conduct which led to non-compliance. | • 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 |
| 6 | Sanlam Life Insurance Limited | 2021-09-17 | A financial penalty of R1.5 million and a caution not to repeat the conduct which led to the non-compliance. R500 000 of the financial penalty of R1.5 million is, however suspended, in terms of section 45C(4)(c) of the FIC Act, for a period of three (3) years from 28 July 2021, subject to Sanlam Life Insurance Limited adhering to certain conditions imposed by the SARB. |
• Sections 21G: Customer due diligence (enhanced due diligence requirements in respect of domestic prominent influential persons) • Sections 28: Cash transactions above prescribed limit • Section 42:Risk management and compliance programme • Regulation 24(3) read with regulation 29(7) of the Money Laundering and Terrorist Financing Control Regulations relating to suspicious and unusual transaction reporting. |
