Reserve Bank sanctions VBS bank

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JOHANNESBURG –The South African Reserve Bank has imposed administrative sanctions on VBS Mutual Bank over its failure to fully comply with the Financial Intelligence Centre Act (Fica).

The Reserve Bank says VBS's Fica inspection discovered weaknesses.

It's measures to combat financial crime, such as money laundering, tax evasion, and terrorist financing activities were found wanting.

READ: VBS Mutual Bank's lips sealed on Zuma home loan

The mutual bank made headlines last year, after it granted President Jacob Zuma a seven-point-eight million rand home loan to pay for non-security upgrades to his Nkandla home.

The reserve bank is mandated to ensure that all banks have adequate controls in place to comply with Fica.

VBS has since been slapped with a two point five million rand fine, though R2-million of this is suspended.