Standard Bank hit with R17m in financial penalties over compliance failures
R5 million has been suspended, leaving the lender with penalties worth R12 million.
The Prudential Authority (PA) has levied a R17 million fine on Standard Bank due to compliance issues uncovered during a 2023 inspection. The penalties, reduced by R5 million, include three cautions, three reprimands, and a financial penalty. Standard Bank failed to properly check customers, lost track of client records, and lacked adequate anti-money laundering training.
The regulator, responsible to the South African Reserve Bank, found that 34% of money transfer client files lacked adequate customer checks, and 52% of these files did not have proof of address or work permits. Additionally, 52% of staff did not receive anti-money laundering refresher training in 2022 and 2023, and 37% did not get AML/CFT induction training in 2023.
Despite the penalties, Standard Bank maintains it has not facilitated any illegal activities like money laundering or terrorist financing.
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