The SARS has welcomed a High Court judgment about its R5.3bn damages claim against Sasfin Bank, saying the ruling marks ‘significant progress’ in holding financial institutions accountable for facilitating illicit financial flows.

A Moneyweb report notes that SARS issued a summons for R5.3bn against Sasfin in December 2023, alleging the bank assisted taxpayers to illegally export undeclared funds from SA.

Sasfin raised legal exceptions to SARS’ particulars of claim, which were argued in the Gauteng High Court (Pretoria) on 9 October.  The judgment was delivered on 3 November 2025. 

According to SARS, the court upheld Sasfin’s exceptions ‘in certain respects and dismissed it in respect of others’.

The exception was upheld because the court found that the statutory framework – comprising the Banks Act, the Financial Intelligence Centre Act (Fica) and the Exchange Control Regulations – does not give rise to a private law duty of care owed to SARS or other creditors.

However, SARS highlights that the dismissal of Sasfin’s exception on the element of causation and its objection to an alternative claim is a significant development.

SARS says the ruling confirms that it ‘has a statutory right of action under section 278 of the Financial Sector Regulation Act for losses suffered due to contraventions of financial sector laws’, allowing the alternative claim to proceed to trial.

SARS will consider its next steps, including amending its pleadings as permitted by the court or applying for leave to appeal aspects of the judgment to the SCA.

Full Moneyweb report