Tag Archives: Monitoring

Reserve Bank Fines 5 Banks (Incl Standard Bank)

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Standard Bank & Others Fined By Reserve Bank

Standard Bank and 4 other banks have got into trouble with the South African Reserve Bank because of under-reporting on possible money laundering transactions.

When large amounts of money are moved around the SARB want to know so that they can keep an eye out for possible money laundering. They rely on banks to keep a track on these transactions and notify them. This sort of thing is done by Ai systems within the banks and is overseen by the Prudential Authority. The requirements are set out in the Financial Intelligence Centre Act (FICA).

SARB Investigation & Monitoring

After some visits and inspections by the SARB 5 banks got into trouble and received fines including Standard Bank, GroBank, Ubank, Bank of China (JHB) and HBZ Bank.

Each of the banks has not been accused of hiding any transactions and no apparent money laundering has happened but their systems were not up to scratch and have not been doing what they should with regard to monitoring and reporting.

While most of the smaller banks were hit with warnings 0r fines that are suspended as long as they pull their socks up during the next 3 years, Standard Bank was hit with a massive R22.5 Million bill now.

 

The fines look like this:

Standard Bank – R30 Million – (R 7.5 Million Suspended)

GroBank – R5 Million (suspended)

Bank of China (JHB branch) – R2 Million (suspended)

HBZ – Strong warning

Ubank – R500 000 fine and warning

The banks are all taking measures to address the issues to avoid further fines and problems with the SARB. They are keeping the SARB appraised of the steps they are taking to improve reporting.