SARB fines Old Mutual R15.9 million for several FICA violations
The reserve bank said that Old Mutual continuously failed to conduct customer due diligence.
Picture: Facebook/OldMutualSA
JOHANNESBURG - Insurance company Old Mutual has been found guilty of failing to develop effective programmes to combat terrorist financing, money laundering and other illicit money flows.
The company has been fined R15.9 million by the South African Reserve Bank (SARB).
The sanctions follow an inspection conducted in 2020 by the Prudential Authority, a division within SARB tasked with supervising and enforcing compliance of the Financial Intelligence Centre Act (FICA).
The reserve bank said that Old Mutual Life Assurance Company continuously failed to conduct customer due diligence.
It said that the insurer failed to timeously report cash transactions above the prescribed limit to the Financial Intelligence Centre.
SARB said that the company also failed in its obligation to report suspicious and unusual transactions to the authorities.
Old Mutual has been found to have poor control measures to identify and counter illicit money flows.
In the R15.9 million fine imposed on Old Mutual, the reserve bank has suspended R4.9 million for a period of 36 months.