VBS fined R2.5m for flouting money-laundering regulations

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May 29 2018

In 2017, embattled VBS Mutual Bank was fined R2.5-million by the South African Reserve Bank (SARB) for failing to comply with regulations aimed at preventing money laundering and combatting the financing of terrorism.

This is according to the 2017 annual report from the Reserve Bank’s banking supervision department, which was released on Tuesday morning.

The mutual bank — which was put under curatorship in March — was give a R2.5-million fine with R2-million suspended for one year, and given a directive to take remedial action to correct the deficiencies in its controls.