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Authorised Dealers in foreign exchange (commercial banks) and ADLAs are personsauthorised by the SARB to deal in foreign exchange transactions and are regulatedaccordingly. ADLAs include bureaux de change and are authorised to deal only incertain limited, designated foreign exchange transactions, including travel-relatedtransactions.
The Financial Intelligence Centre Act 38 of 2001 (FIC Act) mandates the SARB toensure that ADLAs have adequate controls in place to combat acts of moneylaundering and the financing of terrorism. Flowing from these responsibilities, theSARB inspects ADLAs to assess whether they have appropriate measures in place,as required by the FIC Act.
The administrative sanctions were imposed after the SARB conducted inspections atMaster Currency (Pty) Limited, in terms of the FIC Act. The inspections foundweaknesses in the control measures the ADLA, Master Currency (Pty) Limited, had inplace to control anti-money laundering and combating the financing of terrorism.
It should be noted that the administrative sanctions were imposed because of certainweaknesses that were detected in the ADLA’s control measures which inhibited theADLA from proactively detecting financial crime, and not because it was found to havefacilitated transactions involving money laundering or the financing of terrorism.
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The administrative sanctions imposed are as follows:
- a financial penalty of R100 000 in terms of section 45C(3)(e) of the FIC Act, for failing to provide ongoing training to employees to comply with the provisions of such Act in terms of section 43 thereof; and
- a directive in terms of section 45C(3)(c) of the FIC Act, to provide the requisite refresher training at all branches, and to submit confirmation and evidence that such training has been conducted and will continue to be conducted on an annual basis.
Distributed by APO Group on behalf of Republic of South Africa: Department of Government Communication and Information.