The Prudential Authority of the South African Reserve Bank has imposed administrative sanctions totalling R209,692,132 on Sasfin Bank Limited for non-compliance with the Financial Intelligence Centre Act, the Banks Act, and the Financial Sector Regulation Act. The sanction, notified to Sasfin on 1 August 2024 and disclosed by the bank on 6 August 2024, includes R49,048,034 that has been suspended, resulting in an effective financial penalty of R160,644,103.
The violations are principally rooted in historic non-compliance within Sasfin's foreign exchange business — a division that the bank has since discontinued entirely.
FX BUSINESS SHUT DOWN AFTER COMPLIANCE FAILURES
Sasfin's foreign exchange operation was closed following the emergence of compliance issues that are now at the centre of the PA's sanctions. The bank stated that all employees who were implicated in the underlying conduct had been dismissed and that criminal cases had been opened in connection with the relevant conduct.
The sanctions were issued under multiple statutory instruments, with the FIC Act occupying a central role.
SARS SUMMONS
Separately from the PA's administrative sanctions, Sasfin disclosed that it is subject to a summons from the South African Revenue Service amounting to nearly R4.9 billion, arising from unpaid taxes owed by former clients of its discontinued forex business. The SARS claim is separate from the PA enforcement action.
The suspended portion of the sanction amounts to R49,048,034. Sasfin said it "has and continues to work proactively and transparently with the relevant authorities and regulators" and was considering further representations that could lead to a review or appeal of the sanctions. Sasfin has said it will defend the SARS claim, which it believes has no merit.