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The financial regulator Prudential Authority, which falls under the National Treasury says it is extremely concerned about the allegations against some South African banks.
This after an international news network documentary implicated Standard Bank, Absa and Sasfin in helping gold smuggling gangs.
According to the documentary, the gangs launder millions of dollars in exchange for bribes.
Standard Bank says it has a zero-tolerance stance on fraud and criminality. It says these allegations are viewed in a serious light and has confirmed that due process is being followed internally.
Absa says it detected alleged illicit tobacco and gold-based money laundering activities in early 2020 and they are working with several law enforcement agencies.
Prudential Authority says it’s also looking into these allegations and they have made progress on anti-money laundering legislation.
The #AlJazeeraDocumentary that had laid bare levels of illicit financial flows and gold smuggling in Zimbabwe has sent shock waves in Africa.
The plundering of African Resources by some leaders on the continent has led to countries struggling to address the issues of poverty, unemployment and access to services.
The second episode has also pointed to how financial institutions are making illicit trade possible. This comes barely a month after South Africa has been grey-listed.
Professor Ibbo Mandaza weighs in from Harare:
