Africa-Press – South-Africa. South Africa’s financial watchdog has pulled the operating licence of Salt Asset Management (SAM) for its work for controversial cigarette company Gold Leaf Tobacco.
The decision means that SAM will no longer be permitted to provide any financial services to customers.
SAM was founded in 2011 by Clive Salgado, with Mohamed Khan – also known as “Mo Dollars” – joining as a director in 2013.
The company was fingered in a recent documentary produced by Al-Jazeera for its alleged involvement in a transnational gold laundering scheme.
According to Al-Jazeera, Khan built a money-laundering empire by bribing influential people at several South African banks to either turn a blind eye or work actively with him. The publication said that Khan used SAM and another company, PKSA, to launder large sums of money through fake invoices and stolen identities.
Khan denied any involvement in money laundering, bribes, or any other criminal activity to the publication..
The Financial Sector Conduct Authority (FSCA) said its decision to ban SAM stems from an inspection it conducted last year.
It conducted the probe following allegations of SAM’s potential involvement in money laundering activities linked to Gold Leaf Tobacco.
Gold Leaf, which has Zimbabwean tobacco boss Simon Rudland as a director, had its assets frozen by the SA Revenue Service last year. Rudland has denied any wrongdoing.
“The inspection revealed significant compliance deficiencies and a poor level of understanding by SAM of their money laundering and terrorist financing risks,” said the FSCA this week.
The watchdog said SAM failed to identify clients’ true identities, conduct due diligence on clients, screen clients against sanctions lists, or maintain transaction records.
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