The South African Reserve Bank’s Prudential Authority imposed administrative sanctions on the Bank of Taiwan, South Africa Branch (BOTSA) for non-compliance with provisions of the Financial Intelligence Centre Act 38 of 2001 (FIC Act), following an inspection conducted in 2022 under section 45B. The sanctions consist of a caution not to repeat the conduct that led to the non-compliance and a reprimand. The breaches related to section 42 of the FIC Act and weaknesses in BOTSA’s Risk Management and Compliance Programme (RMCP) governance and implementation. BOTSA did not provide evidence that material amendments to its RMCP Introduction Manual were approved by its Executive Committee before implementation, did not adequately manage records of the manual’s annual review, failed to implement its RMCP and required due diligence for two assessed correspondent banking relationships for Vostro accounts, and did not provide evidence that its Screening of Customers and Transactions Manual had been reviewed and approved after 2020. The Prudential Authority noted that BOTSA cooperated and has undertaken remedial action to address the identified compliance deficiencies and control weaknesses.
South African Reserve Bank 2025-06-20
South African Reserve Bank's Prudential Authority imposes administrative sanctions on Bank of Taiwan South Africa Branch for Financial Intelligence Centre Act breaches
The South African Reserve Bank's Prudential Authority imposed administrative sanctions on the Bank of Taiwan, South Africa Branch, for non-compliance with the Financial Intelligence Centre Act 38 of 2001. The sanctions include a caution and reprimand due to weaknesses in BOTSA's Risk Management and Compliance Programme governance and implementation. BOTSA has cooperated and initiated remedial actions to address these deficiencies.