The South African Reserve Bank (SARB) has penalized Capitec Bank for failing to adequately comply with the Financial Intelligence Centre Act (FICA). Inspections revealed deficiencies in customer due diligence practices.
The South African Reserve Bank ( SARB ) has imposed a R56.25 million penalty and administrative sanctions on Capitec Bank for serious failures in complying with financial regulations. The sanctions stem from inspections conducted in 2021 and 2022 under the Financial Intelligence Centre Act ( FICA ). Capitec Bank was found to have inadequately conducted customer due diligence, enhanced due diligence, and ongoing due diligence in respect of sampled client files.
This included deficiencies concerning the obtaining and verification of address and source of funds, and the lack of senior management approval for re-risk rating clients or reviews of high-risk clients. The administrative sanctions consist of seven cautions, one reprimand, and a financial penalty totalling R56.25 million, of which R10.5 million is conditionally suspended for 36 months
Capitec Bank SARB FICA Compliance Failures Financial Penalties
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