VBS fined for failing to comply with financial laws
The details are contained in the SA Reserve Bank's 2017 Bank Supervision Department annual report which was released on Tuesday.
PRETORIA – A new South African Reserve Bank (Sarb) report has revealed that VBS Mutual Bank is among two banks that were fined for failing to comply with financial laws and regulations.
The details are contained in the 2017 Bank Supervision Department annual report which was released on Tuesday.
The Reserve Bank placed VBS under curatorship in March when its liquidity challenges meant it could no longer repay deposits to clients.
The bank report reveals that VBS Mutual Bank and the China Construction Bank Corporation were fined R275 million respectively last year.
The central bank found that VBS was not identifying and verifying customers’ details as required.
The mutual bank also failed to report certain cash transactions above R25,000 to the Financial Intelligence Centre and did not have adequate controls and working methods to report suspicious and unusual transactions.
Two million rand of the penalty imposed on VBS was suspended for one year.
(Edited by Leeto M Khoza)