MEDIA STATEMENT
Public Interest SA Condemns Old Mutual’s Reckless Breach of FICA Regulations
Public Interest SA is deeply troubled by the revelations that Old Mutual has been fined nearly R16 million for its shocking failure to comply with the Financial Intelligence Centre Act (FICA) —laws critical to preventing money laundering, tax evasion, and the financing of terrorism. This level of negligence is unacceptable, particularly in a country that is grappling with the dire consequences of greylisting** by the Financial Action Task Force (FATF).
South Africa is in the midst of an unprecedented struggle to rebuild its international reputation and address the systemic issues that led to its inclusion on the FATF’s grey list. Old Mutual’s reckless disregard for the very laws designed to fight financial crime is a blow to these efforts. The company’s failure to verify clients’ physical addresses, identify beneficial owners, report suspicious transactions, and develop adequate risk management programs demonstrates a lack of commitment to the country’s financial stability and global standing.
Let us be clear—Old Mutual’s conduct is not a mere administrative oversight. It is criminal negligence that undermines South Africa’s attempts to restore confidence in its financial institutions. The consequences of these actions will fall hardest on ordinary South Africans, including the millions who rely on Old Mutual for financial security. Amidst a cost-of-living crisis, greylisting only makes life more difficult for citizens, as it increases the costs of doing business, limits access to international markets, and stifles economic growth.
Despite Old Mutual's statement accepting the fine, the company’s failures reflect gross irresponsibility and disregard for its legal obligations. While the Prudential Authority has noted that remedial action has been taken, the damage to South Africa’s reputation has already been done. At a time when every institution in the financial sector should be doing everything in its power to ensure South Africa’s removal from the grey list, Old Mutual’s actions demonstrate a reckless disregard for both the law and the public interest.
Given Old Mutual's alarming conduct, it may be necessary for the Prudential Authority to reassess its decision to approve the Group's establishment of a bank. At the very least, the Authority should impose stricter conditions on Old Mutual’s banking license, beyond the initial requirements, to ensure heightened scrutiny and compliance. This would serve as a safeguard against future violations and reinforce accountability, given the company's demonstrated inability to meet fundamental regulatory standards.
Public Interest SA calls for stronger regulatory enforcement and accountability across the financial sector. Institutions like Old Mutual must face more severe consequences for undermining national efforts to combat financial crime. We demand that all companies, large and small, take their compliance with FICA and other financial laws seriously. The fight against corruption and financial crime is not a matter of choice, but a legal, economic and moral obligation.
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Note to Editors: Off The Books Summit 2025
Public Interest SA is pleased to announce that it will be hosting the OFF THE BOOKS SUMMIT next year. The summit aims to tackle many of the systemic issues that contributed to South Africa's greylisting by the FATF, focusing on strengthening compliance, accountability, and transparency across the financial and corporate sectors. We invite stakeholders from the private sector, government, and civil society to join us in addressing these critical challenges and working towards a more secure and resilient financial environment for South Africa.
For further inquiries about the Off The Books Summit, please contact:
Kanyisa Booi
Tel: 010 005 5884
Image: Bloomberg
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