A South African regulator has imposed a reduced penalty of R400,000 ($27,000) on the local unit of India's Bank of Baroda for non-compliance with certain provisions of the Financial Intelligence Centre Act (FIC). The Prudential Authority (PA), which supervises and enforces the FIC Act, said on Tuesday the penalty follows an on-site inspection in 2014 that found deficiencies relating to compliance, as well as weaknesses in controls to counter potential money laundering and terrorist financing. In 2016, the PA conducted a follow-up inspection, which found that some deficiencies in controls remained. Following that, the Bank of Baroda was slapped with administrative sanctions, including a combined financial penalty of R11 million for non-compliance with the FIC Act and deficiencies in respect of money laundering controls, the PA said. Bank of Baroda lodged an appeal and the Appeal Board reduced the R11 million financial penalty to R400,000, the PA said. It confirmed that the bank had now paid the penalty.