Old Mutual Life Assurance Company South Africa (OMLACSA) has come out and said that the business is not a conduit for money laundering.
This statement comes after the South African Reserve Bank (SARB) slapped the company with administrative sanctions last week.
The SARB has imposed administrative sanctions on OMLACSA due to their non-compliance with the provisions of the Financial Intelligence Centre Act 38 of 2001 (FIC Act) after a FIC Act inspection was conducted in 2020.
According Reserve Bank, the administrative sanctions consist of four cautions and a financial penalty that totals R15.9 million, of which R5.9 million is conditionally suspended for 36 months as of July 23, 2024.
Old Mutual agrees to pay
The insurer said that following a routine on-site inspection by the Prudential Authority (PA), Old Mutual has agreed to accept an administrative sanction.
The company said that the fine is an administrative sanction stemming from gaps identified in the AML Program during the past inspection, not because Old Mutual was found to be a conduit for money laundering.
“OMLACSA remains committed to working with the regulator to ensure that it continuously meets the required standards,” Old Mutual said.
The insurance business also noted that it would not appeal the sanction.
The PA also noted that Old Mutual has cooperated with the organisation and has undertaken the necessary actions to address all the compliance deficiencies and control weaknesses.
“The administrative sanctions imposed on OMLACSA are not due to it having any involvement in and/or facilitating any transactions relating to money laundering or the financing of terrorism,” the PA said in a statement.
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