The Prudential Authority of the South African Reserve Bank (SARB) has fined Sasfin Bank R210 million.<\/p>\n\n\n\n
The bank received administrative sanctions from the Prudential Authority under the Banks Act, Financial Sector Regulation Act, and Financial Intelligence Centre Act. <\/p>\n\n\n\n
The full total was R209.7 million, but R49.1 million was suspended. Thus, the net sanctions amount to R160.6 million.<\/p>\n\n\n\n
The group said that the sanctions relate to allegations of historic non-compliance within Sasfin Bank’s discontinued foreign exchange business.<\/p>\n\n\n\n
“Sasfin has and continues to work proactively and transparently with the relevant authorities and regulators,” said the group. <\/p>\n\n\n\n
“Sasfin has taken legal advice and is considering further representations, which could result in a review or appeal of the sanctions in terms of the provisions of the relevant regulations.” <\/p>\n\n\n\n
The group’s foreign exchange business has been embroiled in several regulatory issues.<\/p>\n\n\n\n
The South African Revenue Service (SARS) issued a civil summons for R4.87 billion plus interests and costs in the form of a damages claim earlier this year.<\/p>\n\n\n\n
The summons was received in January, following SARS\u2019s inability to collect income tax VAT and penalties allegedly owed by former foreign exchange clients.<\/p>\n\n\n\n
Major changes at the bank <\/strong><\/p>\n\n\n\n The group did, however, announce that it has received regulatory approval to dispose of Sasfin Bank’s Capital Equipment Finance and Commercial Property Finance businesses, as going concerns, to African Bank Limited for R3.25 billion. <\/p>\n\n\n\n The group said that the conclusion of the disposal marks an essential step in its strategic reset, where it plans to delist from the Johannesburg Stock Exchange (JSE).<\/p>\n\n\n\n As per the transaction, Sasfin Wealth will purchase Sasfin Holdings, with shareholders offered a price of R30.00 per ordinary share in Sasfin Holdings. <\/p>\n\n\n\n Women Investment Portfolio Holdings Limited (Wipfin) and Unitas Enterprises Limited, owned by former and current CEO Roland and Michael Sassoon, will each acquire an 8.8% shareholding of Sasfin Wealth. <\/p>\n\n\n\n Sasfin Wealth management will also acquire an effective 15% interest in the enlarged issued share capital of Sasfin Wealth, funded by Sasfin Wealth in whole or in part through a vendor finance scheme.<\/p>\n\n\n\n “Should the full net sanction need to be provided for, and after the African Bank Limited disposal, the Sasfin Bank Capital Adequacy Ratio is expected to strengthen to circa 20%. Further, Sasfin Bank will hold ample excess liquidity,” said the group.<\/p>\n\n\n\n The group said that the delisting will allow for the following:<\/p>\n\n\n\n\n
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