Regulatory Alerts2025-12-11
Sector Risk Assessment for South Africa’s Banking Sector (2022-2024)
The Prudential Authority of South Africa conducted this assessment to evaluate money laundering, terrorist financing, and proliferation financing risks across the national banking sector from 2022 to 2024. The report assigns high inherent risk ratings to large domestic banks due to their extensive transaction volumes and cross-border connectivity, while foreign, mutual, and co-operative banks face medium to low inherent risks. Although existing mitigating controls are generally adequate, the Authority identifies critical weaknesses in governance, customer due diligence, and transaction monitoring that require immediate enhancement to reduce persistently elevated residual risks.
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