South Africa's banking and insurance watchdog imposed regulatory fines of more than R115 million on financial institutions during the financial year 2024/25.
The Prudential Authority's latest annual report shows that among these fines, Capitec received the largest sanction.
The enforcement section of the report details a range of administrative sanctions imposed on banks, insurers and other regulated entities for breaches of financial sector law, including failure to comply with Financial Intelligence Center Act (FICA) and prudential requirements.
I am writing annual reportSouth African Reserve Bank Governor Lesetja Kganyago said the authority “focused on a number of measures to strengthen South Africa's financial system” during this period.
“We continue to focus on protecting financial customers, protecting against risks such as more sophisticated cyber attacks and acute climate change, while encouraging healthy lending to support economic activity.”
Nomfundo Shazibana, Deputy Governor of the South African Reserve Bank and CEO of the Prudential Authority, said it “continues to implement a risk-based, forward-looking supervisory plan that includes regular bilateral engagement with foreign regulators, in-country visits and supervisory colleges for banking groups and internationally active insurance groups”.
These engagements have provided valuable insights and enabled timely and appropriate regulatory action when necessary, Shazibana said.
Capitec Bank received the largest fine of R56.25 million, of which R10.5 million was suspended after the Prudential Authority found multiple breaches related to anti-money laundering controls, customer due diligence, cash limit reporting, suspicious transaction reporting and risk management and compliance requirements.
enforcement action Expanded across a wide section of South Africa's financial sector.
Approved institutions include Old Mutual Life, Sanlam-owned Safrican Insurance, the South African subsidiary of State Bank of India, mutual savings bank Finbond, Eskom's captive insurer Escape, Assupol Life, Lewis Group-owned Monarch Insurance, commercial insurer Infinity Insurance and the National Education, Health and Allied Workers Union Savings and Credit Co-operative (Nehavu Sacco). Are included.
Old Mutual Life was fined R15.9 million, while Saffrican Insurance was hit with an administrative fine of R13 million. State Bank of India South Africa was fined Rs 10.25 million, Escape Rs 7.645 million, Finbond Mutual Bank Rs 5 million, Essuppol Life Rs 4 million, Infinity Insurance Rs 2.14 million, Monarch Insurance Rs 1 million and Nehavu Sacco Rs 20,000.
beyond punishment itselfThe report provides a snapshot of the regulator's wider enforcement activity.
The Prudential Authority said it considered 141 non-compliance referrals involving alleged breaches of financial sector law and FICA during the financial year. It also conducted 22 on-site anti-money laundering and financing of terrorism (AML/CFT) inspections in banks, foreign bank branches and life insurers.
The increase in enforcement comes as South Africa works to preserve reforms that helped it be removed from the Financial Action Task Force (FATF) gray list in October 2025.
In its June quarterly bulletin, the South African Reserve Bank said South Africa's exit from the gray list as well as the change to the bank's revised 3% inflation target through 2025 had boosted investor sentiment. The central bank also noted that capital inflows ahead of the October announcement reflected improving fiscal metrics and market anticipation of South Africa's removal from the FATF gray list.
officials have continuous reinforcement Since then the country's anti-money laundering framework. From July 1, travelers entering or leaving South Africa will have to declare cash, goods or bearer negotiable instruments worth more than R100,000 through SARS Customs, while the regulator is preparing financial institutions and other accountable institutions for South Africa's next FATF reciprocal assessment, which is expected to conclude in 2027.
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