The South African Reserve Bank (SARB) has imposed administrative sanctions on Access Forex (Pty) Limited, a Zimbabwe-based authorised dealer in foreign exchange with limited authority (ADLA), for failing to comply with the Financial Intelligence Centre Act (FICA).
The sanctions, totalling R162 500, were imposed because of deficiencies in Access Forex’s anti-money laundering and counter-terrorist financing controls, specifically related to its Risk Management and Compliance Programme (RMCP), customer due diligence processes, and staff training, the SARB said in a statement on 17 October.
Access Forex (Pty) Limited, headquartered in Harare, operates as an ADLA, a category of financial institution authorised by the SARB to conduct specific foreign exchange transactions, such as those related to travel.
As an ADLA, Access Forex is subject to oversight by the SARB, which, under the FICA, is mandated to ensure that such entities implement robust controls to combat money laundering, terrorist financing, and proliferation financing.
The SARB’s statement cites three specific sections of FICA – sections 42(1), 20, and 43 – as the basis for the sanctions against Access Forex.
Section 42(1) mandates that accountable institutions must develop, document, maintain, and implement an RMCP. The SARB imposed a fine of R100 000 on Access Forex for failing to comply with section 42(1). It said the company failed to reflect essential provisions of FICA in its RMCP document and exhibited “specific weaknesses” in its control measures.
The SARB cites a R37 500 fine for non-compliance with section 20, linked to Access Forex’s failure to “verify and identify some of its customers”. However, section 20 was repealed in June 2017. This reference is likely a mis-citation, with the sanction more accurately tied to section 21, which requires accountable institutions to establish and verify the identity of clients before entering business relationships or conducting certain transactions.
Section 43 requires accountable institutions to provide ongoing training to their employees to ensure compliance with the Act and the institution’s RMCP. This training must equip staff to recognise and address risks related to money laundering, terrorist financing, and proliferation financing and to follow the institution’s compliance procedures effectively. Access Forex was fined R25 000 for failing to provide adequate training to its staff members.
