Capitec's R56m blow

PENALTY: DUE TO NONCOMPLIANCE WITH CERTAIN PROVISIONS OF FICA

- Suren Naidoo

Capitec Bank, SA's fastest-growing JSE-listed bank, has been hit with a penalty of R56.25 million by the South African Reserve Bank (Sarb) for failing to comply with certain anti-money laundering regulations. The Sarb announced the administrative sanctions last Friday, noting that R10.5 million of the fine is conditionally suspended for a period of 36 months as from 30 July.

This is not the first time Capitec has fallen foul of Financial Intelligence Centre Act (Fica) regulations.

"The Prudential Authority is mandated to supervise and enforce compliance by accountable institutions with the provisions of the FIC Act or any order, determination or directive made in terms thereof," the central bank said.

"The inspection in 2021 focused on the retail bank segment and the 2022 inspection focused on the business banking segment of Capitec Bank."