SA banks under threat as Zuma holds off signing anti-corruption law
David Lewis, executive secretary at the Paris-based Financial Action Task Force (FATF), has warned that South Africa risked being struck off its membership if it failed to pass its anti-corruption FICA law in time for FATF’s next meeting in June.
The Financial Intelligence Centre Amendment (FICA) bill, which is needed for local banks to remain part of the international banking system, has still not been signed into law.
Speaking to Reuters, Lewis said South Africa could be sending the wrong signal worldwide on “the financial sector about the risks of business relationships involving South Africa”.
According to the report, the bill is meant to bolster the fight against global financial crime by making it easier to identify ultimate owners of companies and accounts – including those of “domestic prominent influential persons” such as cabinet ministers.
“Effective action to mitigate the risk of corruption by politically exposed persons, as set out by the FATF Standards, is extremely important, particularly in the context of Africa, where corruption has been recognised as a problem,” said Lewis.
Despite being fully assented to by parliament in in May 2016, last year president Jacob Zuma sent the FICA bill back to parliament over concern about its constitutionality.
Parliament sent the bill back to Zuma virtually unchanged in February 2017, where it has remained since.
Late last week several prominent activist groups including the Black Business Council and the Progressive Professional Forum lobbied Zuma not to sign the bill, stating that it was arbitrary and unconstitutional.
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