Safin Holdings has rejected a R4.87 billion claim for damages brought by the South African Taxation Service in connection with allegations of money laundering and bribery by former employees and customers of its banking business.
“This allegation, which we categorically deny, will require a lengthy trial and the matter will be resolved within the next few years,” Sasfin CEO Michael Sassoon said in an emailed statement. It's very likely.”
The South African Revenue Service's (SARS) civil case comes after media outlet Al Jazeera reported last year that staff at Safin Bank, Standard Bank Group and Absa Bank were involved in money laundering in exchange for bribes from international funds. This was brought up in response to this. A smuggling syndicate with strong ties to Zimbabwe.
advertisement
Continue reading below
read:
Shedding light on Zimbabwe's $4.5 billion annual gold smuggling racket [Mar 2023]
Zimbabwean government breaks silence on gold smuggling allegations [Apr 2023]
Sassoon said the case dates back to 2014 and involved a criminal organization colluding with former employees of Sassfin Bank, who operated beyond the scope of their employment and authority. He said Sars was then unable to collect income tax, value-added tax and penalties allegedly owed by his bank's former foreign exchange clients.
“As soon as Sasfin became aware of the collusion, we took decisive action and launched an independent investigation, which resulted in us terminating our relationships with the customers and employees involved and initiating criminal proceedings against them.” “It became,” he said.
“It is unfair for banks to be held liable to SARS for taxes not paid by their customers.”
Following the allegations, Mr. Safin obtained a legal opinion on the matter. Sars declined to comment on the matter when asked by Bloomberg News.
“Importantly, this is a claim for damages, not a tax claim, and has nothing to do with Safin's own tax operations,” Sassoon said. “Sasfin has concluded that this claim does not result in the recognition of any liability and has no impact on its capital position.”
© 2024 Bloomberg LP
