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South African Regulator Fines SBI’s South Africa Branch

The Prudential Authority of the South African Reserve Bank has imposed a financial penalty of 10 million rand (₹4.5 crore) on the State Bank of India’s South Africa branch for non-compliance with certain provisions of the country’s Financial Intelligence Centre Act 38 of 2001 (FIC Act). The penalty comprises an immediately payable portion of 5.50 million rand, already paid, and a suspended amount of 4.50 million rand, contingent on compliance within 36 months.

Bank of Baroda Cooperating in Compliance Investigations

Investigations by South African Reserve Bank

Bank of Baroda is currently under investigation by the South African Reserve Bank for alleged compliance lapses at its branch in South Africa. The bank is actively cooperating with the investigations.

Disclosure and Compliance Measures

Bank of Baroda has made all necessary disclosures under Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015. It has also improved its compliance processes and implemented remediation measures to enhance KYC/AML procedures to meet regulatory expectations.

Ongoing Legal Proceedings

Some matters related to the investigations are sub-judice, including Bank of Baroda’s appeal against a fine equivalent to Rs 50 million. The bank assures that it will keep the stock exchanges informed of any significant developments arising from these investigations.

Market Reaction

Bank of Baroda’s stock closed 1.97 per cent down at Rs 154.40 on the BSE on Tuesday following the news.

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