Bank compliance review
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Individual Reform: Bank compliance review 2026 - 2027

Bank compliance review (per Zondo recommendation)

Summary

Limited information on bank compliance review.

Canvas not supported.

Is it working?

No action yet.

Actions

Unclear on developments.

Are there plans?

It appears to be not part of government's plans.

Is it on the agenda?

Zondo Commission recommendation.

Goals

The Zondo Commission recommended that the Financial Intelligence Centre undertake a study to determine if banks complied with their obligations to report suspicious state capture transactions.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

Limited information on bank compliance review.

Canvas not supported.

Is it working?

No action yet.

Actions

Unclear on developments.

Are there plans?

It appears to be not part of government's plans.

Is it on the agenda?

Zondo Commission recommendation.

Goals

The Zondo Commission recommended that the Financial Intelligence Centre undertake a study to determine if banks complied with their obligations to report suspicious state capture transactions.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

Limited information on bank compliance review.

Canvas not supported.

Is it working?

No action yet.

Actions

Unclear on developments.

Are there plans?

It appears to be not part of government's plans.

Is it on the agenda?

Zondo Commission recommendation.

Goals

The Zondo Commission recommended that the Financial Intelligence Centre undertake a study to determine if banks complied with their obligations to report suspicious state capture transactions.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

Limited information on bank compliance review.

Canvas not supported.

Is it working?

No action yet.

Actions

Unclear on developments.

Are there plans?

It appears to be not part of government's plans.

Is it on the agenda?

Zondo Commission recommendation.

Goals

The Zondo Commission recommended that the Financial Intelligence Centre undertake a study to determine if banks complied with their obligations to report suspicious state capture transactions.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

Limited information on bank compliance review.

Canvas not supported.

Is it working?

No action yet.

Actions

Unclear on developments.

Are there plans?

It appears to be not part of government's plans.

Is it on the agenda?

Zondo Commission recommendation.

Goals

The Zondo Commission recommended that the Financial Intelligence Centre undertake a study to determine if banks complied with their obligations to report suspicious state capture transactions.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

The Financial Intelligence Centre (FIC) has been actively involved in conducting a comprehensive review of the effectiveness of the current regulatory reporting regime under the FIC Act, focusing specifically on banking compliance with anti-money laundering and counter-terrorism financing measures as recommended by the Zondo Commission. The bank compliance review is intended to ensure that banks rigorously apply anti-money laundering and counter-terrorist financing measures, monitor and report suspicious transactions effectively, and demonstrate accountability and transparency in their operations.

Canvas not supported.

Is it working?

The FIC's review has shown some implementation gaps, but corrective actions are under way to improve efficiency and effectiveness of the regulatory and law enforcement response to financial crimes linked to corruption and state capture.

Actions

The 2025 progress report on implementation of State Capture Commission recommendations identifies the FIC’s review and enhanced enforcement as significant active measures contributing to ongoing anti-corruption efforts.

Are there plans?

Yes – FIC appointed independent attorneys in August 2022 to conduct the review, project plan and timelines set. There is ongoing collaboration with law enforcement and SOEs.

Is it on the agenda?

A Zondo commission recommendation, forms part of the Financial Intelligence Centre's strategy of comprehensively review of the effectiveness of the current regulatory reporting regime under the FIC Act, focusing specifically on banking compliance with anti-money laundering and counter-terrorism financing measures.

Goals

The aim of the bank compliance review proposed by the Zondo Commission is to strengthen the regulatory oversight and internal controls of banks in SA to prevent their financial systems from being exploited so as to launder stolen state funds linked to corruption and state capture.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

The Financial Intelligence Centre (FIC) has been actively involved in conducting a comprehensive review of the effectiveness of the current regulatory reporting regime under the FIC Act, focusing specifically on banking compliance with anti-money laundering and counter-terrorism financing measures as recommended by the Zondo Commission. The bank compliance review is intended to ensure that banks rigorously apply anti-money laundering and counter-terrorist financing measures, monitor and report suspicious transactions effectively, and demonstrate accountability and transparency in their operations.

Canvas not supported.

Is it working?

The FIC's review has shown some implementation gaps, but corrective actions are under way to improve efficiency and effectiveness of the regulatory and law enforcement response to financial crimes linked to corruption and state capture.

Actions

The 2025 progress report on implementation of State Capture Commission recommendations identifies the FIC’s review and enhanced enforcement as significant active measures contributing to ongoing anti-corruption efforts.

Are there plans?

Yes – FIC appointed independent attorneys in August 2022 to conduct the review, project plan and timelines set. There is ongoing collaboration with law enforcement and SOEs.

Is it on the agenda?

A Zondo commission recommendation, forms part of the Financial Intelligence Centre's strategy of comprehensively review of the effectiveness of the current regulatory reporting regime under the FIC Act, focusing specifically on banking compliance with anti-money laundering and counter-terrorism financing measures.

Goals

The aim of the bank compliance review proposed by the Zondo Commission is to strengthen the regulatory oversight and internal controls of banks in SA to prevent their financial systems from being exploited so as to launder stolen state funds linked to corruption and state capture.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

Regular, risk-based reviews are used to benchmark banks' anti-money laundering and countering the financing of terrorism (AML/CFT) controls, highlight sectoral weaknesses and trigger remediation or enforcement where non-compliance is found. These are critical for systemic integrity and FATF ratings. This sub-review specifically interprets and enforces the Zondo recommendations for the banking sector. This includes rigorous review of historic transactions, upgrades to reporting and law enforcement referrals on state capture cases, FIC-appointed independent legal advisors to assess reporting effectiveness, bank actions on escalation, and the handover to law enforcement.

Canvas not supported.

Is it working?

Banks have improved risk management and suspicious transaction reporting, but systematic sector-wide closure of all historic Zondo-related findings is not yet fully complete. Final Zondo-focused audit recommendations remain tracked by the FIC, SARB and NPA for execution and public transparency cycles.

Actions

There are ongoing legal, compliance and audit reviews. Banks are subject to ongoing monitoring and random compliance checks, with special focus on state capture and high-level cases.

Are there plans?

Yes. FIC, in collaboration with SARB and the NPA, maintains ongoing project plans for review, assessment and public disclosure, with further legislative adjustments linked to the next national anti-corruption policy review.

Is it on the agenda?

Yes. These reviews are featured in the presidency's progress implementation reports and referenced in National Treasury and FIC public accountability statements.

Goals

Assess effectiveness of regulatory and AML reviews of banks, drive remedial action from FIC inspections and address issues raised by the Zondo commission inquiry.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Summary

The Financial Intelligence Centre (FIC) and the PA (the South African Reserve Bank division that supervises banks for financial soundness) conduct regular, risk-based compliance inspections of South African banks to check whether their internal anti-money laundering systems are working effectively. Where weaknesses are found, banks are issued with compliance directives and must fix the problems within set timeframes. These reviews also respond to findings from the State Capture Inquiry (the Zondo Commission), which identified serious failures in some banks' detection and reporting of suspicious transactions linked to state corruption.

Canvas not supported.

Is it working?

Progress is steady but incomplete. Approximately 30% of targeted banks had outstanding remediation as at Q1-26, with no material improvement in published data in Q2-26. FIC and SARB enforcement directives are visible and trackable. The upcoming FATF evaluation will scrutinise whether the supervisory system leads to effective remediation and sanctions, not just the issuance of directives.

Actions

Ongoing risk-based inspections, compliance directives and requests for remedial action are being issued. Coordination between FIC, SARB and FSCA ensures systematic follow-up on non-compliance. Risk-based compliance inspections are ongoing. FIC and the PA have identified specific control weaknesses at some targeted banks, with remediation in progress. Three-year risk and compliance reporting requirements for banks have been confirmed, adding institutional accountability to the review cycle. No new published enforcement data indicating material improvement was available in Q2-26.

Are there plans?

Yes. FIC and SARB aim to complete full remediation on all historic and new findings, with biannual progress review cycles and workshops linked to State Capture Inquiry recommendations and FATF requirements.

Is it on the agenda?

Yes. Yes. FIC bank compliance reviews are reported in FIC's annual reports and are a regular item in NT risk oversight and Cabinet cluster meetings.

Goals

To ensure South African banks have effective internal controls to detect, report and prevent money laundering and terrorism financing - through regular independent inspections, with mandatory remediation when problems are found.

References

Departments / Govt Institutions

Financial Intelligence Centre (FIC) South African Reserve Bank (SARB) The Presidency

Analyst: Tinashe Kambadza
Status: In progress
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