The Prudential Authority (PA), responsible for enforcing compliance with the Financial Intelligence Centre Act 38 of 2001 (FIC Act), has imposed administrative sanctions on Absa Bank following a 2022 inspection.
The bank failed to meet key regulatory requirements, resulting in a R10 million fine, a reprimand, and two formal cautions.
Key Compliance Failures Leading to Sanctions
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Inadequate Customer Due Diligence (CDD) & Enhanced Due Diligence (EDD)
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Absa failed to properly screen four foreign prominent public officials (FPPOs) and two politically exposed persons (PEPs) linked to state-owned enterprises.
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The bank also neglected enhanced due diligence on three domestic prominent influential persons (DPIPs) and five FPPOs.
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Penalty: R7 million, a reprimand, and a caution.
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Breach of FIC Act Directive 5 of 2019
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8,559 automated transaction monitoring alerts were not resolved within 48 hours.
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Four non-reportable alerts were also delayed.
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Two suspicious activity reports were closed after the 15-day deadline (violating Regulation 24(3)).
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Penalty: R3 million and a caution.
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Absa’s Response & Remedial Actions
The PA acknowledged Absa’s cooperation and confirmed the bank has taken corrective measures to address compliance gaps.
This enforcement action underscores the PA’s commitment to strict anti-money laundering (AML) controls and financial crime prevention.
