Reserve Bank fines China Construction Bank for failing to follow procedures
The Johannesburg office of China Construction Bank (CCB) has been fined R75m by the South African Reserve Bank for failing to follow proper administrative procedures. The Reserve Bank said on its website on Friday that of the R75m fine, R20m had been suspended on condition CCB complies with the Reserve Bank’s orders. "It should be noted that the administrative sanctions were not imposed because CCB was found to have facilitated transactions involving money laundering or the financing of terrorism but because of weaknesses in the bank’s control measures," the Reserve Bank said in its statement. The Reserve Bank listed five areas of the Financial Intelligence Centre (FIC) Act in which CCB’s administrative processes had been found wanting. These included the FIC Act’s "know-your-customer" requirements. CCB also failed to comply with proper record keeping, including cash threshold reporting, detecting terrorists, and flagging unusual transactions. "CCB is co-operating with the [the Rese...
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