Company implicated in gold smuggling loses licence

The South African Financial Sector Conduct Authority (FSCA) has provisionally withdrawn the operating licence of Salt Asset Management, which was recently implicated in an Al Jazeera investigation into alleged money laundering for a global gold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. BusinessLIVE reports that 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 29 November 2022 and 1 December 2022 in terms of the Financial Intelligence Centre Act, the regulator said in a statement last week. 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 it 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.

Full BusinessLIVE report