The South Africa Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R1.7 million on Harith General Partners (Pty) Ltd, a licensed financial services provider and accountable institution, for contraventions of the Financial Intelligence Centre Act, 2001 following an FSCA inspection. The inspection found deficiencies in Harith’s Risk Management and Compliance Programme, including failure to set out how it would determine and report reportable transactions and how it would comply with United Nations Security Council-related prohibitions. Harith was also found to have failed to conduct required customer due diligence, including client and representative identification and verification, obtaining information on the nature and purpose of the business relationship and source of funds, and establishing and verifying beneficial ownership. In addition, it could not provide evidence of screening client information against targeted financial sanctions lists, or of conducting periodic employee competence and integrity screening and related sanctions list scrutiny as required. Alongside the penalty, the FSCA issued a directive requiring remediation, with R500,000 of the penalty conditionally suspended for two years.
South Africa Financial Sector Conduct Authority 2025-10-21
South Africa Financial Sector Conduct Authority fines Harith General Partners R1.7 million for Financial Intelligence Centre Act compliance failures
The South Africa Financial Sector Conduct Authority (FSCA) imposed a R1.7 million penalty on Harith General Partners (Pty) Ltd for breaches of the Financial Intelligence Centre Act, 2001. The FSCA inspection revealed deficiencies in Harith's Risk Management and Compliance Programme, including failures in customer due diligence and compliance with UN Security Council-related prohibitions. A directive for remediation was issued, with R500,000 of the penalty conditionally suspended for two years.