South African companies and executives hit with R2.89 billion in fines

South Africa’s finance regulator imposed record penalties as it sought to deter misconduct and boost trust in the industry.

The Financial Sector Conduct Authority levied more than R2.89 billion in fines in the year through March 31, compared with R119.8 million a year earlier, it said in a report Friday.

The most serious penalty was in excess of R2 billion levied against online-trading platform Banxso for deepfake advertising and misappropriating client funds.

The authority also withdrew Banxso’s licenses, debarred key company officials for 30 years and forwarded the matter to prosecuting authorities to pursue a criminal case, Divisional Executive of Enforcement Gerhard van Deventer said at a briefing. 

The FSCA’s actions have contributed to South Africa’s hard-won exit last year from the global dirty-money list in 2025, with the nation demonstrating a revamped regulatory framework and improved compliance.

The regulator concluded 678 investigations during the period, the highest number of cases finalised in a single year.

It debarred 68 individuals for failing to meet so-called fit-and-proper standards, withdrew 14 licenses, and issued 140 public warnings. 

The FSCA imposed an administrative penalty of R358.75 million on Stehan Grobler, a former executive at the collapsed global retailer Steinhoff, for publishing false statements. 

“A broader market-abuse probe is still ongoing,” Van Deventer said. “In the coming year, we will eventually get to the point where we can put that case behind us.”

The regulator also imposed a R212 million fine on Medbond for investor harm after the company marketed fictitious investment products to investors that resulted in losses of about R194 million.