RSK4804
ASSIGNMENT 1
DUE DATE: 29 MAY 2026
, RSK4804 ASSIGNMENT 1 2026
DUE 29 MAY 2026
Pillay, Y. (2025) ‘Standard Bank fined R13 Million for violating FIC Act
Regulations’, The Star, 24 January, available from:
https://thestar.co.za/businessreport/economy/2025-01-24-standard-bank-fined-r13-
million-for-violating-fic-actregulations/.
Accessed
1. Identify five risks applicable in this case and provide a reason for each.
2. What steps can be taken to mitigate the risks identified in this case?
QUESTION 1
1. Identification of five case-specific risks
The Standard Bank case reveals several risks arising from non-compliance with the
Financial Intelligence Centre Act (FIC Act).
Compliance and regulatory risk
Standard Bank failed to comply with sections 21C, 23(c), 28 and 29 of the FIC Act, as
well as FIC Act Directive 5/2019. This exposed the bank to administrative sanctions
and a R13 million fine (Pillay, 2025). Non-compliance with statutory requirements
directly triggers regulatory penalties and can lead to further supervisory action.
Operational risk: The bank’s internal systems and controls were inadequate to
ensure timely handling of 75 729 automated transaction monitoring alerts within 48
hours and the closure of 94 558 STR/SAR alerts within the prescribed 15-day period.
ASSIGNMENT 1
DUE DATE: 29 MAY 2026
, RSK4804 ASSIGNMENT 1 2026
DUE 29 MAY 2026
Pillay, Y. (2025) ‘Standard Bank fined R13 Million for violating FIC Act
Regulations’, The Star, 24 January, available from:
https://thestar.co.za/businessreport/economy/2025-01-24-standard-bank-fined-r13-
million-for-violating-fic-actregulations/.
Accessed
1. Identify five risks applicable in this case and provide a reason for each.
2. What steps can be taken to mitigate the risks identified in this case?
QUESTION 1
1. Identification of five case-specific risks
The Standard Bank case reveals several risks arising from non-compliance with the
Financial Intelligence Centre Act (FIC Act).
Compliance and regulatory risk
Standard Bank failed to comply with sections 21C, 23(c), 28 and 29 of the FIC Act, as
well as FIC Act Directive 5/2019. This exposed the bank to administrative sanctions
and a R13 million fine (Pillay, 2025). Non-compliance with statutory requirements
directly triggers regulatory penalties and can lead to further supervisory action.
Operational risk: The bank’s internal systems and controls were inadequate to
ensure timely handling of 75 729 automated transaction monitoring alerts within 48
hours and the closure of 94 558 STR/SAR alerts within the prescribed 15-day period.
