Standard Bank Fined R13 Million as SA Tries To Get Off Grey list
Banking News
The South African Reserve Bank’s Prudential Authority has fined Standard Bank South Africa R13 million for failing to meet key legal requirements under the Financial Intelligence Centre Act.
SA Grey Listed
Black listing might not exist in South Africa’s personal credit market any more but it does in international investing circles.
South Africa is currently on an international “grey list” due to weaknesses in combating money laundering and terrorism financing.
‘The country is currently working very hard to strengthen its financial regulations and enforcement’
The country is currently working very hard to strengthen its financial regulations and enforcement to regain compliance with global standards. It is hoped that the listing could even be lifted later this year.
This has resulted in a string of investigations and fines at many of the countries biggest financial institutions as the SARB tries to get everyone to pull their socks up.
Standard Bank Hit With Fine
Following an inspection in 2022, the PA found that the bank had not properly monitored certain clients’ financial activities and failed to keep accurate records of suspicious transaction reports.
These lapses led to administrative sanctions, including financial penalties and cautions against repeating such violations.
One of the key issues was SBSA’s failure to report over 1,400 cash transactions on time and the delayed submission of 17,259 suspicious transaction reports (known as STRs).
The bank also struggled with its automated monitoring system, failing to address 75,729 alerts within the required 48 hours. These delays raised concerns about its ability to effectively detect and prevent financial crimes.
As a result, the PA handed out a hefty fine of R13 million (with R5 million specifically for reporting delays and R8 million for monitoring failures).
Despite these shortcomings at the bank (and remember this was all back in 2022), the PA noted that Standard Bank had cooperated fully during the investigation and has since taken corrective steps to address the issues.
Read More: See What Standard Bank Have To Say About The Fine Here
Getting Off the Grey List
This case underscores the importance of all financial institutions big and small sticking to anti-money laundering regulations to safeguard the integrity of South Africa’s financial system.
Getting off the international grey list will (1) seriously improve South Africa’s global reputation, making it easier for businesses and banks to attract foreign investment and trade.
It will also (2) reduce costs and delays in international transactions which will strengthen the country’s financial stability as a whole.
