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Banking News

In the midst of the Sasfin Bank sale of assets to African Bank the bank has been fined R210 million by the South African Reserve Bank’s Prudential Authority.

The bank has been hit with such a big fine for breaking important rules related to its former foreign exchange business.

Out of the  fine, R49.1 million is currently being suspended so the bank really owes R160.6 million.

Still, that’s a pretty penny for messing up. These penalties are tied to portions of the Banks Act and Financial Intelligence Centre Act which are key laws that govern how banks should operate safely and fairly.

Sasfin Bank has said that it is cooperating with the authorities but that they might eventually decide to challenge the fine (by taking legal action). 

The fine is just one of several problems the bank has faced, especially with its foreign exchange business, which has also been hit with a massive R4.87 billion claim from the tax authorities earlier this year.

Changing The Business Drastically

Despite these challenges or perhaps because of them, Sasfin is making some big changes.

The bank recently got approval to sell parts of its business to African Bank for R3.25 billion.

Read More: African Bank To Buy Part of Sasfin Bank

That money may come in handy if they end having to pay such a massive tax bill.

Sasfin is also planning to stop being listed on the Johannesburg Stock Exchange (JSE).

By doing this, the bank hopes to save money and have more flexibility in how it operates. Shareholders will have the chance to sell their shares at a higher price before the bank delists, while key people within the company will take on bigger ownership roles. So, there’s lots on the go at Sasfin at the moment with big changes ahead.