The Financial Sector Conduct Authority (FSCA) has provisionally withdrawn the operating licence of Salt Asset Management, which was recently implicated in an Al Jazeera investigation into alleged money laundering for a global gold smuggling ring.
The provisional withdrawal means the firm is barred from conducting business as a financial services provider under the Financial Advisory and Intermediary Services Act. It also cannot render any financial services to clients or on behalf of any financial product provider until such time as the FSCA opts to rescind its licence withdrawal.
The decision follows adverse findings emanating from an inspection conducted by the FSCA on Salt Asset Management between November 29 2022 and December 1 2022 in terms of the Financial Intelligence Centre Act, the regulator said in a statement on Wednesday. The FSCA said the withdrawal was also based on other contraventions it noted during its ongoing supervision of the company.
“The FSCA is aware of recent media reports suggesting the potential involvement of Salt Asset Management in certain money laundering and associated activities,” the regulator said. “These allegations are viewed in a very serious light and are currently being considered by the FSCA.”
Salt Asset Management was implicated in an explosive Al Jazeera documentary that aired in late March, which alleged they played a key role in laundering money for Zimbabwean gold smugglers who reportedly operated in conjunction with cigarette magnate Simon Rudland. At the time Rudland and his company, Gold Leaf Tobacco, denied any involvement in gold smuggling, money laundering or associated activities.
Al Jazeera’s investigation also alleged that staff at Standard Bank, Absa and Sasfin had been on the payroll of Mohamed Khan, who allegedly enabled money laundering through his companies Salt Asset Management and PKSA.
Citing “thousands of documents and interviews” with former colleagues of Khan, Al Jazeera reported that corrupt officials at the three banks assisted him in making illicit money transfers while ensuring his companies received documentation required to evade regulatory scrutiny.
The Doha-based news organisation also alleged that employees at the banks scrubbed computers systems of evidence and that they received bribes ranging from monthly cash payments to overseas holidays and home renovations in exchange for their assistance.
The FSCA has imposed R100.6m in administrative penalties as part of its actions to ensure compliance with SA’s financial regulatory framework during its 2022/23 financial year.
The regulator imposed a total of R153.86m in administrative penalties on 44 investigated parties between April 1 2022 and March 31, according to its regulatory actions report for that period, which was released on Tuesday. However, after taking into account those penalties that were suspended or set aside after reconsideration by the Financial Services Tribunal, the total administrative penalties payable dropped to R100.64m.
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