Reserve Bank fines Amex and four others

AMERICAN Express and Forex World are among five companies saddled with fines after the South African Reserve Bank imposed administrative sanctions on authorised dealers in foreign exchange.

This after inspections in terms of the Financial Intelligence Centre Act found weaknesses in control measures to control money laundering and combat the financing of terrorism. The sanctions imposed are:

• Tourvest Financial Services (Pty) Limited trading as American Express Foreign Exchange Services:

A directive that it implement adequate processes for the sanction screening of clients.

A financial penalty of R750 000 for failing to report cash transactions above R24 999.99 to the Financial Intelligence Centre – R250 000 of the penalty is suspended for 12 months.

A financial penalty of R80 000 for failing to identify and verify clients’ details, and R100 000 for failing to verify another person’s authority to act on behalf of the client.

• Forex World (Pty) Limited: A financial penalty of R260 000 for failing to verify clients’ details‚ and to verify authority granted to another person to act on behalf of the client.

A financial penalty of R100 000 for failing to implement internal rules‚ or alternatively‚ to provide appropriate training to its employees – suspended for 12 months.

A penalty of R50 000 for failing to report cash transactions above R24 999.99 within the prescribed period – suspended for 12 months.

• Ayoba Foreign Exchange (Pty) Limited: A financial penalty of R80 000 for failing to verify clients’ details, and R50 000 for failing to provide appropriate training.

A financial penalty of R50 000 for failing to appoint a person to ensure compliance with the act.

• Imali Express (Pty) Limited: A financial penalty of R100 000 for failing to implement adequate processes for the sanction screening of clients, and R50 000 for failing to provide training to employees – suspended for three months.

• Sikhona Forex (Pty) Limited: A caution not to repeat its failure to verify corporate client’s details, and to report suspicious and unusual transactions.

A financial penalty of R130 000 for failing to verify clients’ details.