As increasing numbers of MMM users complain about not being able to get cash from other participants, South Africa\u2019s top five banks have responded to a Fin24 query regarding MMM banking activity.<\/p>\n
Fin24 user Thandekile told Fin24 on Thursday that she has been blocked access to getting money from other users for two months.<\/p>\n
\u201cI didn’t get my money I deposited on the 4th of April,\u201d she said. \u201cI claimed it on the 4th of May and nothing happened until today – I don’t think I will get it.\u201d<\/p>\n
Capitec [JSE:CPI] CEO Gerrie Fourie told Fin24 that the bank has shut down over 2 000 accounts. Capitec head of communications Charl Nel added that \u201cthe onus is then placed on the client to prove that the activity on the account is not fraudulent\u201d.<\/p>\n
Fin24 reached out to the top five banks of South Africa to find out if they follow Capitec\u2019s strategy.<\/p>\n
This is what they told Fin24:<\/p>\n
1. Nedbank\u00a0<\/strong><\/p>\n \u201cNedbank has identified accounts linked to the scheme,\u201d said Ebrahim Jadwat, head of credit risk monitoring at Nedbank. \u201cThe volumes are insignificant.<\/p>\n \u201cProcesses were put in place some time ago to prevent such accounts from being opened. Existing accounts are being managed appropriately on an individual basis.\u201d<\/p>\n 2. Absa\u00a0<\/strong><\/p>\n \u201cAbsa takes a zero tolerance approach to any criminal or fraudulent activity,\u201d said an Absa spokesperson.<\/p>\n \u201cWhile we conduct the necessary due diligence at the time an account is opened, we also investigate all suspected fraudulent or criminal activities that are either brought to our attention or which are detected by our internal systems and processes.<\/p>\n \u201cWhere necessary, the appropriate action is taken in line with our policies and existing legislation.\u201d<\/p>\n 3. FNB<\/strong><\/p>\n \u201cWe are unable to respond in detail to your questions on the basis that the information sought is confidential and may be proprietary in nature,\u201d an FNB spokesperson said.<\/p>\n \u201cFirst National Bank (FNB) complies with all laws relevant to the operation of accounts held by the bank.<\/p>\n \u201cWe employ significant resources to ensure that the bank meets its compliance requirements in terms of all applicable legislation.\u201d<\/p>\n 4. Standard Bank\u00a0<\/strong><\/p>\n \u201cWe don\u2019t comment on whether or not we hold accounts on behalf of customers,\u201d said Standard Bank spokesperson Ross Linstrom.<\/p>\n \u201cThe bank complies with its regulatory obligations as set out in the applicable legislation.\u201d<\/p>\n 5. Investec\u00a0<\/strong><\/p>\n \u201cInvestec does not have exposure to MMM,\u201d said Ursula Nobrega, head of investor relations at Investec.<\/p>\n While many of the banks remained guarded about their exposure to MMM, the South African Reserve Bank (Sarb) told Fin24 that MMM is being investigated.<\/p>\n \u201cThe scheme was referred to the National Consumer Commission and it is a matter of public record that the scheme is currently under investigation by the Hawks,\u201d Bulelwa Boqwana, chief of staff at the Sarb, told Fin24 on Monday.<\/p>\n The Sarb said the public are encouraged to transact with accredited financial institutions, which are regulated and supervised by either the Sarb, the National Credit Regulator, National Consumer Commission or the Financial Services Board.<\/p>\n \u201cGiven our regulatory and supervisory responsibilities and the sensitive nature of the investigations we conduct, the Sarb does not discuss current or potential investigations in the media,\u201d said Boqwana.<\/p>\n \u201cHowever, it is common cause that the Sarb as part of its supervisory role, conducts routine inspections on all banks to ascertain their levels of regulatory compliance.<\/p>\n \u201cThis includes compliance with the FIC (Financial Intelligence Centre) Act, among others,\u201d said Boqwana. \u201cThe conclusions of such inspections are discussed with the banks concerned and where there is a need for remedial action, plans to implement such actions are also discussed.<\/p>\n \u201cIt is the Sarb\u2019s view that the banking sector has a very high level of adherence to the regulatory\/legislative framework applicable to them.\u201d<\/p>\n In its 2015 annual review, the bank supervision department at Sarb said 19 suspected illegal schemes were still active, after the finalisation of 22 schemes during the year under review.<\/p>\n Fin24<\/a><\/p>\n SARB warning on MMM and other dodgy schemes<\/a><\/strong><\/p>\n Beware of MMM \u2013 before it\u2019s too late: Consumer Commission<\/a><\/strong><\/p>\n MMM South Africa collapses \u2013 and starts over<\/a><\/strong><\/p>\n We are not a Ponzi scheme: MMM South Africa<\/a><\/strong><\/p>\nSarb praises banks for sticking to rules<\/h3>\n
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