South Africa’s central bank is investigating a fintech firm co-founded and chaired by a senior official in the coalition government’s second-largest party over alleged exchange control violations involving a $220 million offshore transfer. The inquiry into Kastelo, the company founded by the Democratic Alliance’s head of finance Mark Burke, threatens to further tarnish the party’s clean governance brand after its former leader accused a lobbying firm chaired by his predecessor of attempting to influence ministers.
The South African Reserve Bank blocked funds belonging to Kastelo in late 2025 after uncovering transfers that allegedly sidestepped local capital regulations, Business Day reported. Burke, who has not been charged with any criminal offences, did not respond to a request for comment.
The investigation also highlights the central bank’s determination to keep South Africa off the Financial Action Task Force money laundering grey list. South Africa spent nearly three years on the list before it was officially removed in October, suffering under heightened global scrutiny, transaction costs, and elevated sovereign risk perception across international markets.