Stiff fines for companies lax on anti money laundering measures

JOHANNESBURG- South African Reserve Bank announced that American Express and Forex World are amongst five companies that have been handed fines after they were imposed with administrative sanctions on authorised dealers in foreign exchange.

SARB conducted inspections at the five companies in terms of the Financial Intelligence Centre Act (FIC Act).

The Sarb said in a statement that inspections they conducted found weaknesses in the control measures the companies had in place to control anti-money laundering and combat the financing of terrorism.

Companies that had sanctions imposed were;

Tourvest Financial Services (Pty) Limited trading as American Express Foreign Exchange Services;

A financial penalty of R750‚000 for failing to report cash transactions above R24‚999.99 to the Financial Intelligence Centre‚ in terms of section 28 of the FIC Act. An amount of R250‚000 of the financial penalty is suspend for 12 months unless there is no re-occurrence and thir must comply to the sanctions.

Forex World (Pty) Limited

Received a financial penalty of R260‚000 for failing to establish and verify clients’ details‚ as well as to establish and verify the authority granted to another person to act on behalf of the client.

A financial penalty of R100‚000 for failing to properly formulate and implement internal rules‚ or alternatively‚ to provide appropriate training to its employees to enable them to comply with the provisions of the FIC Act and the internal rules applicable to them.

Ayoba Foreign Exchange (Pty) Limited

A financial penalty of R80‚000 for failing to establish and verify clients’ details. Including a penalty of R50, 000 for failing to appropriately train their employees to enable them to comply with the provisions of FIC Act and the internal rules applicable to them.

Photo Credit- Bedfordview & Edenvale News

 

Be the first to comment

Leave a Reply

Your email address will not be published.


*


fifteen − two =