HSBC and Bidvest Bank fined millions for non-compliance

Source: Reuters.

The South African Reserve Bank imposed sanctions on Bidvest Bank for failing to comply with the Financial Intelligence Centre Act following a 2022 inspection. The bank did not implement its risk-management and compliance programme (RMCP) for the assessed trade-based transactions.

The Prudential Authority fined Bidvest Bank R5m for non-compliance, with R2.5m suspended for 12 months from 23 August 2024, and warned against recurrence.

HSBC shifts SA customers to FirstRand and Absa, as it exits the country

Lawrence White  26 Sep 2024

Meanwhile, the South African Reserve Bank imposed sanctions on HSBC's Johannesburg branch for non-compliance with the Financial Intelligence Centre Act, following a 2021 inspection.

HSBC failed to conduct adequate customer due diligence, address transaction-monitoring alerts, and implement its risk-management programme. The Prudential Authority issued three cautions and a R9.5m fine, with R4m conditionally suspended for 36 months.

HSBC announced last month that it had exited its South African operations, having finalised agreements with FirstRand and Absa to assume control of its two primary divisions in the country.

Bidvest Bank is currently on the market, with its owner, The Bidvest Group, aiming to secure a buyer before the end of 2024.