South Africa’s banking regulator last week fined Deutsche Bank $857,000 for failing to implement appropriate anti-money laundering controls, the regulator said in a statement.
The South African Reserve Bank (SARB) inspected German bank’s Johannesburg branch in February 2014 “as part of its routine supervisory processes” to assess whether Deutsche Bank had appropriate anti-money laundering and combating the financing of terrorism (AML/CFT) controls in place to ensure compliance with the relevant provisions of Financial Intelligence Centre Act.
That law mandates SARB to supervise and enforce banks’ compliance with FICA to ensure that the necessary AML/CFT controls are in place. Furthermore, SARB has authority to impose an administrative sanction on any bank to which FICA applies, when available facts and information find that the bank in question failed to comply with FICA.
According to SARB, Deutsche Bank must take remedial action to address deficiencies in the following areas: Identifying and verifying Know-Your-Customer (KYC) requirements; and controls and systems relating to the detection of property associated with terrorists and related activities.
Deutsche Bank said in a statement that it acknowledged the inconsistencies and had “cooperated fully in remediating the identified shortcomings within agreed timeframes.”