Nedbank Limited has been fined 35 million rand by the South African Reserve Bank (SARB) for failing to report cash transactions of significant amounts, including administrative deficiencies.

The list of disadvantages of the bank is long:

The SARB stated that Nedbank failed to comply with its risk management and compliance program obligations under sections 42(1), 42(2) and 42(2A) of the FIC Act in that it:

Failed to apply a risk-based approach in its business clusters in accordance with the Risk Management and Compliance Program.

Failed to apply enhanced due diligence controls.

Failed to apply risk rate to your customers.

It failed to provide evidence that it had developed and documented end-to-end procedures, working methods related to its systems and processes used for customer onboarding.

It failed to provide evidence that its controls and/or oversight measures were able to obtain the correct data to enable it to accurately assess the risk of its clients.

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The Prudential Authority (PRA) also imposed a warning, reprimand and financial penalty of R5 million, of which R2 million was suspended for 12 months, under the SARB to monitor and enforce the provisions of the FIC Act in relation to the reporting institutions it controls.

The SARB said it was important to stress that there was no evidence that Nedbank was involved in or facilitated transactions related to money laundering or terrorist financing.

He also noted that Nedbank is cooperating with the PA and continues to take the necessary remedial action to address the identified compliance and control deficiencies.

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