Capitec Fined R56 Million Over FICA Failures and Security Concerns, South Africans Not Surprised

• The South African Reserve Bank's Prudential Authority has imposed administrative sanctions on Capitec Bank
• The bank was hit with a R56 million administrative penalty due to non-compliance with some FICA provisions
• South Africans aren't surprised by the news, as they reflected on their own experiences with Capitec's security woes

Capitec Bank has been hit with a R56 million administrative penalty, and South Africans aren’t surprised.

The bank was fined due to non-compliance with some Finance Intelligence Centre Act (FICA provisions).

Sanctions imposed by South African Reserve Bank

Following inspections of the bank in 2021 and 2022, the South African Reserve Bank’s Prudential Authority (PA) imposed administrative sanctions on Capitec. The sanctions consisted of seven cautions, one reprimand, and a financial penalty totalling R56.25 million.

The inspection found thatCapitecs failed to comply with some FICA provisions.

It also raised concerns about the bank’s failure to report suspicious transactions and weak verification systems, something social media users also noted.

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One customer even reported that fraudsters stole R5,000 from his account on 29 January 2024 while he was inside the bank. He added that Capitec refused to claim responsibility.

South Africans are not surprised

Social media users weighed in on the news, with many saying they experienced problems with the bank itself. On 14 August 2024, a woman released a diss track after she was disappointed in the service she received.

@jawawa95 said:

“Capitec always faces a lot of scandals because of their security banking. It is not safe.”

@SirDavid_Dashe stated:

“Their security is weak.”

@JadePalace1976 added:

“Fine them R200 million so they can feel the pain.”

@Felix_iKati asked:

“What about clients that are banking with Capitec? I have had my funds disappear right in front of me.”

@SipiwoLolo added:

“This thing is not a bank.”

@dezza3ee said:

“Yhoo, finally. The Nigerians’ favourite bank.”

@Amlawlee stated:

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“Capitec is very useless.”

@Miracle7Blue said:

“See, crime pays. They have probably surpassed a billion rand in collecting charges on those suspicious transactions. They are only nailed R56 million.”

@BalebatjeR added:

“A meagre R56 million. It should have been R56 billion.”

Standard Bank customers left fuming

Briefly News reported that Capitec Bank isn't the only financial institution that has experienced problems.

Standard Bank customers were frustrated after experiencing another technical issue with the app on 3 December 2024.

Many customers reported that their balances reflected zero or that they had limited functionality.

Source: Briefly News