The South African Reserve Bank has imposed multi-million rand fines on five South African banks including Standard Bank after the central bank found weaknesses in each of the banks’ money laundering control measures.
The other banks are GroBank Limited (formerly known as The South African Bank of Athens Limited), Ubank Limited, Bank of China, Johannesburg Branch and HBZ Bank Limited.
The central bank in a statement said: “It should be noted that the administrative sanctions were imposed because of weaknesses identified in banks’ compliance with the provisions of the FIC Act, and not because the said banks were found to have facilitated transactions involving money laundering or the financing of terrorism.”
Standard Bank received a financial penalty of R30 million with R7.5 million of the fine suspended for a period of three years.
GroBank Limited was slapped with a financial penalty of R5 million and a caution not to repeat the conduct which led to non-compliance. However, the whole fine was suspended for three years.
Bank of China – Johannesburg Branch was fined R2 million with the fine also suspended for a period of three years.
Ubank Limited got a financial penalty of R500 000 while HBZ Bank Limited received a caution not to repeat the conduct which led to non-compliance.
By Kabelo Khumalo
