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Reserve Bank fines Absa R10 million after money laundering probe

Reserve Bank fines Absa R10 million after money laundering probe

The South African Reserve Bank (SARB) has imposed fines on two local banks because of weaknesses it said it found in their control measures to combat money laundering.

The Reserve Bank said it imposed administrative sanctions on Société Générale Johannesburg Branch, and Absa Bank Limited (Absa), and has directed the firms to take remedial action.

The SARB said it conducted inspections in terms of the Financial Intelligence Centre Act (FIC Act) and found weaknesses in both bank’s anti-money laundering and combating the financing of terrorism control measures.

It imposed the following penalties:

Absa: A financial penalty of R10 million and a directive to take remedial action in the following area:

  • certain identified weaknesses in the bank’s controls and working methods pertaining to transaction monitoring.

Société Générale: A financial penalty of R2 million and a directive to take remedial action in the following areas:

  • identifying and verifying customers’ details (better known as know-your-customer or KYC requirements);
  • maintaining customer and transactional records as prescribed.

The central bank said that the financial penalty is, however suspended for a period of two years from 27 October 2016, subject to Société Générale adhering to certain conditions.

It stressed that neither bank was found to have facilitated transactions involving money laundering or the financing of terrorism.

The SARB said that both banks “are cooperating with the SARB and have taken measures to address the identified compliance deficiencies and control weaknesses”.

Read: Reserve Bank fines 5 SA banks after money laundering probe


BusinessTech's Staff Writer is directly plugged into the South African Internet backbone, and spits out press releases and other news as they receive it. They are believed to be cl...
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  • James Dean

    What about our parastatals? Those are massive industrial laundry machines!

  • Jeffery Stokes

    In America this kind of bs would never happen.

    • Deal_with__it

      Sure. That is why HSBC had to pay a $1.9bn fine in the US in 2012 and more this year. There are several others as well. You have embarrassed yourself.

      • HSBC is one of the worst for money laundering criminals like the drug cartels and terrorists, they have been caught multiple times, but the fine is nothing compared to the money they make, so why stop.

        • Deal_with__it

          Ok

    • Hiren Patel

      I’m not so sure about that, they caused the 2008 financial crisis remember 😀

  • Jacobus Pienaars

    Atul? Any comment?

    • Ronald Bartels

      Atul should move his bank accounts to Société Générale.

      🙂

  • Tania

    SARB, how DID you miss all the Gupta-illicit flows? It makes one wonder…

    • They don’t count. They have “connections”.

  • Okay, so now up go the bank charges (to pay the fine) plus more bureaucracy (longer queues than ever) to verify customers’ addresses every six months. The retail customers will feel the pain, the bandits will bypass everything with ease.

  • MelcolmX

    Well goes to show you how our democratic government which is so anti west and is hiding behind the facade of deceit in the same manner as their Russian, Iranian and Saudi counter parts. DUMP THE OLIGACHY CULT ANC!

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