Prudential Authority: Capitec, Ninety One Receive R34M FICA Administrative Fines

• Capitec Bank and Ninety One Assurance Limited received administrative fines from the Prudential Authority for FICA non-compliance.
• Capitec was fined R28 million (R5.5 million suspended), and Ninety One Assurance was fined R6 million (R2.5 million suspended).
• The non-compliance involved administrative gaps in client due diligence, training, and regulatory reporting, not nefarious activities like money laundering.
• Both firms paid the fines without appeal and have since remedied the identified shortcomings.
• These penalties reflect the Prudential Authority's stringent enforcement of FICA, especially after South Africa's FATF grey-listing in February 2023 and subsequent removal in October 2025.

Even in the absence of nefarious intent or actual financial crime, administrative lapses, particularly concerning client due diligence non-compliance ZA and regulatory reporting, are being met with significant financial penalties.

The Prudential Authority, an integral division of the South African Reserve Bank (SARB) tasked with the prudential oversight of financial institutions, has imposed significant administrative fines on Capitec Bank and Ninety One Assurance Limited. These penalties stem from inspections conducted during 2023, which revealed failures by both entities to adhere to the Financial Intelligence Centre Act (FICA).

Capitec Bank received a fine totaling R28 million, with a portion of R5.5 million suspended for a period of 36 months. Similarly, Ninety One Assurance Limited, a subsidiary of the asset management firm Ninety One, was penalized R6 million, of which R2.5 million is suspended for three years, contingent upon ongoing compliance with regulatory standards. Both financial institutions promptly paid their respective fines and chose not to appeal the decisions.

Crucially, both Capitec and Ninety One Assurance have clarified that the identified non-compliance issues were purely administrative in nature. They explicitly stated that the fines are not linked to any nefarious activities such as money laundering, illicit financial transactions, fraud, scams, or any form of financial loss. Furthermore, the companies have confirmed that the shortcomings identified by the Prudential Authority have since been rectified.

Capitec Bank's administrative gaps, which spanned from 2019 to 2023, were found in several critical compliance processes. These included deficiencies in aspects of client due diligence, internal training protocols, and regulatory reporting mechanisms. Ismail Moola, Capitec's chief risk officer, emphasized that these findings did not involve instances of money laundering, illicit financial activity, fraud, scams, or financial loss within the bank. He affirmed Capitec's commitment to engaging constructively with the regulator, addressing all identified issues, and maintaining a robust control environment to combat financial crime.

For Ninety One Assurance Limited, the Prudential Authority identified technical shortcomings within its Risk Management and Compliance Programme, alongside issues in its client due diligence processes. The firm reiterated that there was no suggestion or accusation of money laundering, client misconduct, or any financial harm. Ninety One Assurance accepted the findings, paid the penalty in full, and did not pursue an appeal, indicating their acknowledgment of the regulatory breaches and commitment to resolution.

These Capitec Ninety One FICA administrative fines underscore the Prudential Authority's commitment to stringent FICA enforcement, particularly in light of South Africa's recent history with international anti-money laundering (AML) standards. South Africa was placed on the Financial Action Task Force (FATF) grey list in February 2023, primarily due to critical deficiencies in the nation's anti-money laundering and counter-terrorist financing (AML/CFT) framework. An action plan was subsequently implemented to address these weaknesses, focusing on improving financial reporting and AML enforcement.

Through these concerted efforts, South Africa was successfully removed from the FATF grey list in October 2025. The administrative penalties levied against Capitec and Ninety One Assurance align with the broader national imperative to strengthen AML compliance South Africa fines and ensure that financial institutions uphold the highest standards of regulatory adherence, thereby safeguarding the integrity of the financial system and preventing future grey-listing scenarios.

The actions taken by the Prudential Authority against Capitec and Ninety One Assurance send a clear message regarding the regulator's unwavering focus on FICA compliance. Even in the absence of nefarious intent or actual financial crime, administrative lapses, particularly concerning client due diligence non-compliance ZA and regulatory reporting, are being met with significant financial penalties. This highlights the Prudential Authority FICA enforcement strategy, which prioritizes the foundational elements of AML/CFT frameworks.

These Financial Intelligence Centre Act penalties serve as a critical reminder to all authorized financial institutions that robust internal controls and meticulous adherence to FICA requirements are non-negotiable. The SARB Prudential Authority actions demonstrate that the regulator is prepared to enforce compliance vigorously, ensuring that even technical shortcomings are addressed to maintain the integrity and resilience of South Africa's financial sector.

This development signals the Prudential Authority's continued stringent enforcement of FICA administrative compliance, particularly regarding client due diligence and regulatory reporting. Legal and compliance professionals should review their financial institution clients' AML/CFT frameworks to ensure they meet current standards and avoid similar penalties, even for non-nefarious administrative gaps.

Source: Original reporting via Moneyweb