administrative sanction on Pakistan owned HBZ
South African Reserve Bank found weaknesses in HBZ money laundering control measures
during the routine inspections

The South African Reserve Bank has sanctioned HBZ bank (*a subsidiary of Habib Bank AG Zurich) for violating money laundering and terror financing regulations.

As per the reports, the Reserve Bank has imposed administrative sanctions on five prominent banks – Standard Bank SA, GroBank Limited, Ubank Limited, Bank of China and HBZ after the routine inspections. The South African Reserve Bank found weaknesses in money laundering control measures during the inspection.

Although, HBZ escaped the penalties, but received a strong warning by the Central Bank over suspicious and unusual transaction reporting requirements of AML/CFT and for the failure to comply with training requirements of FIC (Financial Intelligence Centre) Act.

The Standard Bank was charged with a hefty amount of 30 million rand (USD 2.1 million, of which 7.5 million rand was suspended for three years. While Ubank was charged with a penalty of 500,000 rand, GroBank Limited was fined five million rand and Bank of China’s Johannesburg branch two million rand; both of which were suspended for three years.

Source – The Economic Times

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