FSCA imposes R9 million fine on Bhaca Green for forex investment fraud

The Financial Sector Conduct Authority (FSCA) says it has taken decisive regulatory action against Bhaca Green (Pty) Ltd and its associates, Songeziwe Mbalo and Lungile Mgilane, following a damning investigation into unauthorised financial services and misuse of investor funds.

According to the FSCA, on December 9, 2025, it announced that Mbalo was debarred from the financial services industry for 20 years. In addition, administrative penalties totalling R9 million have been imposed on Mbalo and Bhaca Green, jointly and severally. Mgilane has also been fined R50 000.

The FSCA’s investigation revealed that Mgilane rendered financial services to clients on behalf of Bhaca Green and Mbalo, despite neither being authorised as a financial services provider (FSP). This contravened section 13(1)(a) of the Financial Advisory and Intermediary Services Act (FAIS Act), it says.

The regulator says between January 2019 and December 2020, Mbalo and Bhaca Green collected funds from investors under the guise of trading in forex on their behalf. However, the FSCA found that the majority of these funds were not used for trading. Instead, they were diverted to pay purported returns to other investors and to cover Mbalo’s personal expenses. Only a small fraction was actually applied to trading activities.

This conduct amounted to a contravention of section 7(1) of the FAIS Act, as Mbalo and Bhaca Green acted as unauthorised Category II FSPs when they offered and rendered advice, as well as intermediary services, in respect of forex products, the regulator says.

The FSCA says it underscored the gravity of the misconduct, noting that it had not only breached regulatory requirements but also undermined investor trust. “The seriousness and extent of the misconduct cannot be overstated,” the regulator said in its statement.

Given the scale of the violations, the FSCA says it has referred the matter to the South African Police Service (SAPS) and will share all evidence obtained during its investigation. The authority has also committed to providing active assistance to SAPS if requested.

This case highlights the FSCA’s determination to enforce accountability in the financial services sector and to protect investors from unauthorised and exploitative practices, the FSCA says.

“We will not hesitate to act against individuals and entities who disregard the law and compromise the integrity of the financial system,” the FSCA says.

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