MUMBAI: The Prudential Authority, South Africa’s central bank, has imposed administrative sanctions and a penalty on SBI for violating anti-money laundering laws in the country.
Read More: GSM Foils IPO Day 2: Check Subscription Status, GMP Today
In a statement to the exchanges, SBI said that the 10 million rand (Rs 4.5 crore) penalty was imposed ”for not complying with certain provisions of the Financial Intelligence Centre Act” . Section 45C of South Africa’s Financial Intelligence Centre (FIC) Act 38 of 2001 empowers the FIC to issue directives to ensure compliance with the Act. This section enables the FIC to take measures to address issues related to money laundering.
Read More: NTPC Share Price Target 2024: Dividend in Q4 results – Buy, Sell or Hold?
SBI said that the action on the South African branch included an immediate payment of of 5.5 million rand (Rs 2.5 crore) and an additional 4.5 million rand (Rs 2 crore) payable over 36 months.
The bank’s South Africa branch has made the immediate payment of a penalty of 5.5 million rand.
Read More: Awfis Space Solutions IPO Closing Today: Should You Subscribe? Check Recommendations, GMP Today
The amount of 4.5 million rand suspended for 36 months will be paid within the prescribed timeline, the bank said.
In 2018, another public sector lender, Bank of Baroda, had wound up its South Africa operations after being hauled up by authorities for transactions in accounts controlled by the Gupta Brothers. The Gupta Brothers controversy had led to the resignation of then president Jacob Zuma.
