SARB fines foreign exchange outlets for poor controls

Johannesburg – The South Africa Reserve Bank said on Friday it had fined five foreign exchange dealers for poor anti-money laundering controls aimed at combating criminal activities.

The outlets, known as authorised dealers in foreign exchange with limited authority (ADLAs) are licenced by the Reserve Bank to conduct limited foreign exchange services, including travel related transactions.

“The inspections found weaknesses in the control measures the ADLAs have in place to control anti-money laundering and combat the financing of terrorism,” the bank said in a statement.

Ayoba Foreign Exchange (Pty) Limited, Tourvest Financial Services (Pty) Limited trading as American Express Foreign Exchange Services, Imali Express (Pty) Limited, Forex World (Pty) Limited and Sikhona Forex were slapped with penalties ranging from R50 000 to R750 000.

The heaviest fine of R750 000 was imposed on American Express Foreign Exchange Services for failing to report cash transactions above R24 999.99 to the Financial Intelligence Centre, in terms of section 28 of the FIC

An amount of R250 000 of the penalty was suspended for 12 months on condition that the dealer was not found guilty of the same offence during the suspension period.

Some of the dealers were found to have failed to identify and verify clients’ details.

However, the Reserve Bank stated that the sanctions were “not imposed because the outlets were found to have facilitated transactions involving money laundering or the financing of terrorism but because of weaknesses in their control measures”.

In 2001, South Africa introduced the Financial Intelligence Centre Act which is aimed at detecting criminal and money laundering activities linked to financing of terror acts.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

ZAR/USD
17.05
(-0.01)
ZAR/GBP
21.72
(+0.19)
ZAR/EUR
19.89
(+0.35)
ZAR/AUD
12.02
(+0.69)
ZAR/JPY
0.16
(+0.33)
Gold
1853.90
(-0.05)
Silver
22.12
(+0.93)
Platinum
838.00
(+0.66)
Brent Crude
41.98
(+0.17)
Palladium
2225.50
(+0.56)
All Share
54247.81
(+1.84)
Top 40
50127.05
(+2.04)
Financial 15
9588.13
(+0.19)
Industrial 25
74229.70
(+3.26)
Resource 10
53508.98
(+1.08)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1357 votes
It depends on how the funds are used.
73% - 8809 votes
No. We should have gotten the loan elsewhere.
16% - 1941 votes
Vote