Insurers Sanlam Life and Fedgroup Life were sanctioned by the South African Reserve Bank for a failure to have an adequate anti-money laundering and terrorist financing control measures, reports Business Day.
In a statement, the Reserve Bank said the sanctions were imposed because of weaknesses that were uncovered in compliance with certain provisions in the Financial Intelligence Centre Act. Neither insurer is involved in any sort of money laundering or financing of terrorism.
The penalties amounted to R1 million for Sanlam Life and a suspended three-year penalty of R500 000 while Fedgroup Life encountered a R140 000 penalty.
The Prudential Authority (PA) cautioned Sanlam Life not to repeat the conduct.
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