Financial services group Sasfin received a fine of close to R210 million from the Prudential Authority, a division of the South African Reserve Bank.
Sasfin has taken legal advice, though, and is considering further representations that could result in a review or appeal of the sanctions, it said in a statement. The company says the total amount payable is R160 644 103 after the Prudential Authority suspended just over R49 million of the fine.
The fine relates to allegations of “historic non-compliance within Sasfin Bank’s discontinued foreign exchange business”, Sasfin explains. The company says it has and continues to work proactively and transparently with the relevant authorities and regulators.
In addition to the penalty from the Prudential Authority, Sasfin also faces a R4.87 billion civil claim from the South African Revenue Service after reports that Sasfin Bank staff, among others, were involved in laundering money in exchange for bribes from an international gold smuggling syndicate with strong ties to Zimbabwe.
Sasfin Holdings rejected the claim, saying that as soon as it became aware of the collusion, it had taken decisive action and instituted an independent investigation. This resulted in “termination of relationships with implicated clients and employees and the opening of criminal cases against them,” Sasfin CEO Michael Sassoon said in a statement at the time.
The company announced in mid-June that it intends to delist from the JSE. This was followed by a Sens notification in February announcing the sale of its commercial property and capital finance businesses to African Bank.
By MoneyWeb
