Reserve Bank metes out R35m in fines

THE SA Reserve Bank on Friday hit five multinational banks with fines totalling almost R35 million after spot inspections revealed weak measures to combat money laundering and the financing of terrorism. The banks were GBS Mutual Bank, The South African Bank of Athens, Habib Overseas Bank, Investec and Standard Chartered’s Johannesburg branch, the Reserve Bank said in a statement. Wealth manager Investec suffered a R20m penalty for failing to properly screen some its clients. Standard and Chartered’s branch was fined R10m for not reporting cash transactions above R25 000. The other banks got smaller fines, for transgressions ranging from failure to report “suspicious and unusual” transactions to inadequate financial skills training for employees. “The inspections were conducted in terms of the Financial Intelligence Centre Act, which mandates the (Reserve Bank) to ensure that banks have adequate controls… to combat money laundering and the financing of terrorism,” the central bank said. It said the banks were not found to have facilitated illegal transactions or the financing of terrorism, just weak controls. – Reuters

Walmart, Jet.com in push to close deal

WAL-MART Stores and ecommerce start-up Jet.com are trying to close a $3 billion (R41bn) acquisition as soon as today, which will require Jet founder Marc Lore to head the retailer’s online division for several years, according to people familiar with the matter. Lore would stay in that role for longer than the two-plus years he spent at Amazon.com, said one of the people, who asked not to be identified. The deal combines Jet’s proprietary technology, customer data and Lore’s e-commerce know-how with Wal-Mart’s extensive supplier relationships and its $480bn revenue stream that can be used to fight Amazon, the online market leader. – Bloomberg