In September 2018 the Prudential Authority (“PA”) and the Financial Sector Conduct Authority (“FSCA”) entered into a Memorandum of Understanding, which delegated the supervision and regulation of compliance obligations of licensed life insurers ito the Financial Intelligence Centre Act 38 of 2001 (“FIC”) from the FSCA to the PA.
The PA inspected accountable institutions during 2019 and identified weaknesses iro compliance with the provisions of FIC and not because they facilitated transactions involving money laundering or the financing of terrorism.
On Friday last week, the SARB imposed administrative sanctions on three life insurers – OUTsurance Life Assurance, Clientele Life Assurance and Hollard Life Assurance.
The administrative sanctions imposed on these accountable institutions are as follows:
Clientele Life Assurance Company Limited – Financial penalty of R200 000 and a caution not to repeat the conduct which led the failure to comply with cash threshold reporting requirements. The penalty has already been paid by Clientele.
Hollard Life Assurance Company Limited – Cautioned not to repeat the conduct which led to the failure to comply with employee training requirements.
Outsurance Life Insurance Company – Cautioned not to repeat the conduct which led to the failure to comply with employee training requirements.
Compliance with regulations aids businesses and controls must be reviewed regularly to ensure they meet all the obligations.
Contact us today to assess your current controls, materials in order to minimize your risks.
Fathima Khan-Ahmod
Ahmod Consulting (Pty) Ltd
You may also read the article: https://www.iol.co.za/business-report/companies/sarb-imposes-administrative-sanctions-on-outsurance-clientele-hollard-50369881
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