The South African Reserve Bank’s Prudential Authority (PA) has fined Sanlam Life and Fedgroup Life after it found weaknesses in the life insurers’ money laundering control measures. Picture: File
The South African Reserve Bank’s Prudential Authority (PA) has fined Sanlam Life and Fedgroup Life after it found weaknesses in the life insurers’ money laundering control measures.
It imposed a total financial penalty of R1 million, and a R500 000 fine suspended for three years, on Sanlam Life for several reasons.
The PA said on Friday that Sanlam Life failed to comply with “enhanced due diligence requirements in respect of domestic prominent influential persons”, with cash threshold reporting requirements and with suspicious transaction reporting requirements in the FIC Act, read together with Money Laundering and Terrorist Financing Control Regulations.
“Sanlam Life has accepted the administrative sanctions issued by the PA, made payment of the financial penalty, and agreed to focus on enhancing its anti-money laundering and counter-terrorist financing compliance.”
Fedgroup Life was fined R140 000 for failure to comply with anti-money laundering and counter financing of terrorism compliance training requirements, and governance of those requirements including “failure to provide documentary evidence relating to adequate oversight and monitoring in respect of customer due diligence requirements.”
Fedgroup Life appealed the amount of the initial fine, which was R750 000, and it was subsequently reduced. It did not dispute its non-compliance.
“Fedgroup Life is co-operating with the SA Reserve Bank and has agreed to undertaking the necessary measures to address the identified compliance deficiencies and control weaknesses,” the central bank said.
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