The Financial Services Board (FSB) said on Wednesday it will investigate its former CFO Dawood Seedat for alleged corruption.

"The investigation is so thorough as to include a full internal audit supported by the office of the Auditor General. If any finding is made, a full forensic investigation will be conducted," it said in a statement.

The allegations were deeply concerning for the FSB.

"We will continue to require from our employees the highest standards of honesty and integrity."

In a statement issued on June 13 the FSB said Seedat had resigned following "corruption allegations that have been levelled against him in his personal capacity".

On June 20, The Star newspaper reported that Seedat had been accused of demanding millions of rands in bribes to make an audit disappear.

In an affidavit, Africa Cash and Carry CE Edrees Ahmed Hathurani reportedly said he was told in June last year that Seedat was investigating his business.

At a meeting, Seedat reportedly told Hathurani he could use the South African Revenue Service (Sars) and the FSB to close down the business.

Hathurani was then told to pay R12-million to a Sars consultant. He reportedly made several payments between June and November last year, including some to Seedat personally, according to The Star.

The last two payments were recorded on video and one reportedly showed Seedat accepting two boxes containing R1.5-million and R500 000.

The FSB said the Seedat's alleged actions fell outside the FSB's regulatory work and related to his knowledge of the country's tax regime as a result of his past employment at Sars.

"Africa Cash and Carry is not an entity regulated by the FSB. The FSB is subject to very strict legislative secrecy provisions that ensure that the information at its disposal is only used for regulatory purposes," it said.

Before Seedat resigned, he retroactively disclosed to the FSB that he had done consulting work for Africa Cash and Carry.

"Employees are required to disclose to the FSB any outside business interests, which was never done by Mr Seedat before doing business with Africa Cash and Carry," the FSB said.

"The FSB contracts of employment and human resources policies categorically prohibit employees from having any direct or indirect interest in entities regulated by the FSB."