The South African Reserve Bank’s Prudential Authority has imposed three cautions and penalties totaling ZAR 1.6 million on Albaraka Bank Limited following a 2021 inspection that identified noncompliance with the Financial Intelligence Centre Act. Of the total penalty, ZAR 440,000 is conditionally suspended for 36 months from June 10, 2024. Albaraka filed 232 cash threshold reports and 144 suspicious transaction or activity reports late. It also failed to adequately document, approve and implement elements of its Risk Management and Compliance Programme, including customer risk assessments, review triggers, prohibited activities and controls for customer due diligence and regulatory reporting. A separate ZAR 2 million sanction concerning customer due diligence for sampled trade finance clients was set aside by the Appeal Board. Albaraka has remediated the identified deficiencies and control weaknesses.