The South African Reserve Bank (SARB) has levied administrative sanctions on the life insurer Discovery Life Limited and asked it to take corrective steps. The SARB’s action comes after it discovered deficiencies in Discovery Life’s AML measures in April 2019 in relation to the Financial Intelligence Centre Act 38 of 2001 (FIC Act).
The SARB found that Discovery Life failed to comply with cash threshold reporting (CTR) requirements of the FIC Act. The company further failed to comply with the risk management and compliance programme (RMCP) requirements of the FIC Act. It also violated the compliance requirements related to AML/CFT training. Additionally, Discovery Life failed to comply with the governance of AML/CFT compliance requirements of the FIC Act.
For each of these deficiencies, the SARB has cautioned the life insurer against the repetition of the conduct which led to the non-compliance. It has also levied a financial penalty of R500,000 ($34,104) for each of the four offences. However, for the CTR deficiencies, the SARB has suspended the financial penalty of R500 000 ($34,104) for three years.
In totality, the SARB has levied a financial penalty of R1.5 million ($102,315; not including the amount that is suspended for three years). Discovery Life has agreed to take appropriate steps to address its AML/CFT compliance deficiencies and weaknesses.
Source: South African Reserve Bank