Sasfin CEO Michael Sassoon says the money that was allegedly laundered and expatriated through the bank's foreign exchange unit was transferred from other banks.

As a result, Sasfin was not the primary bank of the former tax-dodging clients, which raises the question of why other banks haven't received similar claims from SARS.

Fin24 reports that the banking and wealth management group announced on 27 February that SARS had issued it with a summons in early January for almost R4.9bn in damages, plus interest and costs, due to the failure of some former clients to make true and accurate tax disclosures.

SARS alleges these taxpayers colluded to transfer money offshore in a manner that made the expatriated funds hard to trace, jeopardising its ability to collect tax.

The affected clients also allegedly circumvented foreign exchange and anti-money laundering regulations with the help of at least 11 former Sasfin employees, all of whom either resigned during disciplinary action or were fired and criminally charged by the bank.

However, Sassoon says while the bank takes ownership of what transpired within its offices, it was not the primary bank of the implicated clients who only made use of its soon-to-be shut down foreign exchange unit.

SARS said ‘Sasfin and any other taxpayer have the right to confidentiality which is cemented in Chapter Six of the Tax Administration Act of 2011’.

Full Fin24 report