Sasfin fined R160m over 'compliance weaknesses' in historic forex deals

The South African Reserve Bank’s Prudential Authority (PA) has imposed administrative sanctions on Sasfin Bank.

The authority said the bank “is cooperating with the PA and has taken the necessary measures to address the identified compliance deficiencies and control weaknesses”.

In a notice to shareholders, Sasfin said the total net sanctions amount to R160.6m (total of R209,692,132 of which R49,048,034 is suspended).

“These sanctions principally relate to allegations of historic noncompliance within Sasfin Bank’s discontinued foreign exchange business,” it said.

While it was working proactively and transparently with the relevant authorities and regulators, Sasfin said it had taken legal advice. It is “considering further representations which could result in a review or appeal of the sanctions in terms of the provisions of the relevant regulations”.

The PA cited the bank for noncompliance with certain provisions of the Financial Intelligence Centre Act, saying “weaknesses were identified in Sasfin Bank’s processes”.

“The administrative sanctions ... comprise a financial penalty ... and a directive to take remedial action for failure to provide adequate training to certain employees.”

There was no malintent, the PA stressed. “It should be noted that the administrative sanctions were not imposed because Sasfin Bank was found to have facilitated transactions involving money laundering or the financing of terrorism.”

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