The South African Reserve Bank has imposed administrative sanctions on Southeast Exchange Company South Africa (Pty) Limited, an Authorised Dealer in foreign exchange with limited authority, over anti-money laundering and counterterrorist financing control weaknesses identified under the Financial Intelligence Centre Act. The penalties total R600,000 and relate to failures in customer due diligence, risk management and compliance controls, and related governance measures. According to the release, weaknesses in the firm’s control measures impaired its ability to conduct ongoing due diligence in line with its Risk Management and Compliance Programme and to apply the risk-based methodology set out in that programme. The firm also failed to appoint an Anti-Money Laundering Compliance Officer and to provide staff training. The sanctions comprise R100,000 for non-compliance with section 21 of the FIC Act, R100,000 for section 21C, R200,000 for section 42, R100,000 for section 42A(2)(b) and R100,000 for section 43.
South African Reserve Bank2026-07-09
South African Reserve Bank imposes R600000 in sanctions on Southeast Exchange Company South Africa over anti-money laundering control failures
The South African Reserve Bank has fined Southeast Exchange Company South Africa (Pty) Limited R600,000 for anti-money laundering and counterterrorist financing control failures under the Financial Intelligence Centre Act. The deficiencies included weak ongoing due diligence and risk-based controls under its compliance programme, as well as failure to appoint an Anti-Money Laundering Compliance Officer and train staff.