South African Central Bank Fines HSBC for Lax Money Laundering Controls

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Several weeks after the Nigerian Government pointed accusing fingers at Global Banking Giant HSBC for helping corrupt leaders launder the country, the banking giant has been caught in a similar scenario in another African country; South Africa.

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South Africa’s apex bank, the South African Reserve Bank (SARB) on Friday fined HSBC’s (HSBA.L) local business 15 million rand (844,927 pounds) for utilizing a weak system of detecting money laundering terrorism financing; SARB also ordered HSBC to plug the leakages and fix the problem

South African Central Bank Fines HSBC for Lax Money Laundering Controls

The Prudential Authority (PA), within the SARB which monitors lenders within the South African financial system however said HSBC’s South African branch had already taken the measures required to address the issues.

The Prudential Authority issued a statement to the effect saying;

“Certain weaknesses were identified in HSBC’s processes which inhibited HSBC from proactively detecting potential money laundering and the financing of terrorism.”

It continued further that the bank was not found to have facilitated illicit transactions involving money laundering or the financing of terrorism.

The HSBC in South Africa also issued a statement saying they have accepted the fines following an inspection carried out in 2016 and have also made changes to their anti money laundering system.

“We can confirm that the issues identified by SARB during the 2016 inspection have been fully remediated”

The HSBC had been fined billions of dollars in the United States for allowing Mexican drug cartels to launder millions of dollars through its banks despite promises to tighten its illicit money controls.

The Nigerian government had also accused the bank of helping the late Dictator, General Sani Abacha launder billions of dollars from the country, leaving the African giant extremely impoverished.

The criticisms had however come after the bank had predicted a bleak economic future for Nigeria should President Buhari get a second term in office.


Yinusa McBrian Momoh is an enthusiastic individual who believes in the greatest good for the greatest number as well as a creative Wordsmith with interests in Management Training, Research, Content Development and Digital Marketing

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