South Africa’s Financial Sector Conduct Authority (FSCA) has ordered Momentum Wealth and Momentum Collective Investments to pay ZAR11.1m ($773,000, €654,000) after an inspection found weaknesses in their money laundering and terrorist financing controls.
The regulator stressed the companies were not found guilty of facilitating transactions involving money laundering or terrorist financing but of failing to comply with the Financial Intelligence Centre Act: the pair did not meet cash threshold reporting requirements.
The FSCA added both entities, part of the country’s Momentum financial services group, had duly cooperated with it and were taking remedial action.
In response, Momentum said: “We are serious about the role we play in curbing financial crime. We have already made the necessary adjustments to our processes to ensure compliance.”
Although the group considers the fines high given the nature of the offences, it added: “Our acceptance and payment of the penalties reflect our commitment to ensure compliance with the relevant regulatory requirements and our willingness to address any potential non-compliance issues.”
Momentum Wealth was also found to have failed to identify, verify and risk rate a beneficiary of a trust. The ZAR100,000 fine for that was suspended for three years.
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