Discovery Bank slammed with R3m fine over major compliance failures
Discovery Bank has been slapped with a R3 million fine by the Prudential Authority
Image: e: Karen Sandison Independent Newspapers
Discovery Bank has been slapped with a R3 million fine by the Prudential Authority for failing to comply with key provisions of South Africa’s Financial Intelligence Centre Act.
The penalties follow a 2021 inspection that found several compliance failures. The bank reportedly failed to report 24 suspicious or unusual transaction reports on time, did not provide mandatory training to employees and senior management, and delayed attention to 2,281 automated transaction monitoring alerts.
The inspection also revealed that 84 of 155 new employees had not received training within 30 days of appointment, 47 of 109 employees missed annual refresher training, and 2 of 6 senior managers had not been trained on time.
Furthermore, the bank’s risk management and compliance programme (RMCP) is said to have lacked proper documentation and to have failed to define a “business day” for reporting cash transactions.
Of the total fine, R1 million has been suspended for three years, provided the bank does not repeat the same breaches.
"The administrative sanctions imposed on DBL consist of four cautions not to repeat the conduct which led to the non-compliance, and a financial penalty totalling R3 million, of which R1 million is conditionally suspended for a period of 36 months as from 9 July 2025," the PA said.
"The PA imposed a caution not to repeat the conduct which led to the non-compliance and a financial penalty of R1 million, of which R500 000 is conditionally suspended for a period of 36 months".
The PA also added that, “DBL has cooperated with the PA to undertake the remedial action required to address the identified compliance deficiencies and control weaknesses.”
"DBL has cooperated with the PA to undertake the remedial action required to address the identified compliance deficiencies and control weaknesses"
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