From CompliNEWS | Financial Services Intelligence Watch

News24 reports that the Prudential Authority has imposed administrative sanctions on Capitec Bank and Ninety One Assurance Limited following inspections conducted in 2023, with the findings pointing to weaknesses in customer due diligence, enhanced due diligence, AML governance and sanctions-related controls. Capitec received five cautions and financial penalties totalling R28 million, of which R5.5 million was suspended for three years. The PA found deficiencies in customer due diligence and staff training, as well as failures to obtain appropriate management approval for certain anti-money laundering, name-screening and payment-screening investigation manuals.

The regulator also identified shortcomings in Capitec’s risk management and compliance programme, particularly in relation to terrorist property reporting and financial sanctions. According to the report, Capitec had also implemented certain processes relating to terrorist property reporting before receiving the PA’s formal go-ahead. The findings underline the importance of ensuring that AML/CFT procedures are not only documented, but properly approved, aligned to regulatory requirements and supported by effective staff training and governance.

Ninety One Assurance Limited was separately fined R6 million, of which R2.5 million was suspended. Its principal infringement related to inadequate enhanced due diligence on sampled client files, while its RMCP was also found deficient in the way it addressed screening and risk management for prominent influential persons, the business itself and its clients. Ninety One stressed that there was no suggestion of money laundering, client misconduct or financial harm, and confirmed that it had accepted the PA’s findings, paid the penalty and strengthened its controls.

The sanctions are a useful reminder that FICA enforcement is increasingly focused on the effectiveness and governance of AML controls, not merely whether policies exist on paper. Accountable institutions should ensure that CDD and EDD processes are consistently applied, screening procedures are formally approved, staff training remains current, and RMCP provisions dealing with PEPs, terrorist property and financial sanctions are specific, operational and properly embedded. The fact that both institutions co-operated and remediated weaknesses is positive, but the penalties demonstrate that remediation after an inspection does not erase earlier control failures.

Read the Full News24 report here
Read the Full Prudential Authority release here – Capitec
Read the Full Prudential Authority release here – Ninety One Assurance Limited

Citywire South Africa reports that the Prudential Authority has imposed administrative sanctions totalling R6 million on Ninety One Assurance, following a 2023 inspection under the Financial Intelligence Centre Act. The regulator identified shortcomings in enhanced due diligence on sampled client files and weaknesses in the company’s risk management and compliance programme. The sanction comprises two cautions, two reprimands and the financial penalty, of which R2.5 million is conditionally suspended for 36 months from 19 June 2025. The PA found that enhanced due diligence had not been adequately conducted in certain cases and that the RMCP did not sufficiently address or evidence controls relating to sanctions screening, prominent influential persons, business risk and client risk. It also found insufficient evidence of documented and implemented policies, procedures and controls for meeting relevant FICA obligations. Ninety One described the findings as technical shortcomings, stressed that there was no allegation of money laundering, client misconduct or financial harm, and confirmed that it had accepted the findings, paid the penalty and strengthened its controls.

The case reinforces a theme becoming increasingly visible in FICA enforcement: regulators are testing whether controls are properly documented, evidenced and applied in practice, not merely whether an institution has an RMCP on file. Enhanced due diligence, sanctions and PIP screening, risk classification and supporting procedures must operate consistently and leave a defensible audit trail. The fact that the inspection dates back to 2023 is also a useful reminder that historic weaknesses can still result in significant enforcement action years later, making remediation, record retention and evidence of control improvements particularly important.

Read the Full CityWire report here