Updated: 2nd July, 2025

Did you know your business could be at risk of millions in fines and irreparable reputation damage – simply for inadequately verifying the identity of your customers?

Despite being one of the biggest banks in South Africa, Nedbank was fined R35 million (approximately USD 1.9 million) in 2023 for failing to comply with KYC regulations.

Similarly, Standard Bank South Africa was fined R30 million (approximately USD 2.1 million) for similar failures.

But it’s not just multinational enterprises feeling the wrath of the South African Reserve Bank.

Massive fines have been handed down to smaller financial institutions for Know Your Customer (KYC) and anti-money laundering (AML) failures too.

Ubank Limited was fined R500,000 (approximately USD 35,000), an amount that could be devastating for smaller businesses.

Why Your Business Faces Millions In Unexpected Fines – Even If You Think You’re Compliant

Despite regular warnings from the South African Reserve Bank, many businesses fail to stay up-to-date with ever-changing KYC and AML compliance regulations.

When Deutsche Bank was fined USD 1.96 million in 2019, it was a stark reminder of the stringent regulatory environment.
Many companies remain completely unaware they are non-compliant and fail to properly assess their risk.

However, since that time almost £1.5 billion in fines have been handed down. Many companies remain completely unaware they are non-compliant and fail to properly assess their risk.

Is Your Business At Risk Of AML Or KYC Compliance Breaches?

While banks, telcos and financial institutions are traditional targets, online pirates are setting their sights on vulnerable SMEs who may have overlooked their KYC and anti-money laundering responsibilities.

Identity, payment, cybersecurity, insurance, marketing and SIM swap fraud have all skyrocketed in recent years, with fraud now the #1 crime in South Africa.

You could be a target for fraud and fines from the South African Reserve Bank if your business fails to:

  • Thoroughly verify the identity of new customers
  • Monitor suspicious activity
  • Keep adequate records and compliance documents
  • Train staff on anti-money laundering and KYC protocols
  • Keep up with regulation changes in the space

 

Determine Your Compliance Risk Using The Short 30-Second Quiz

The best place to start with KYC and AML compliance is to understand your level of risk. The 30-second ‘Compliance Risk’ check below will determine whether you’re vulnerable to fraud and potential fines from the FCA for compliance breaches, and give you actionable steps you can take to protect your business virtually overnight.

CHECK MY COMPLIANCE RISK NOW