The Financial Intelligence Centre Act amendment Bill passes constitutional muster, says the Banking Association South Africa (Basa), urging Parliament’s Standing Committee on Finance to refer the Bill back to President Jacob Zuma for signing into law.
Basa appeared before the committee, which held hearings to consider the President's referral back to the committee of a section of the Fica Bill, which he considered unconstitutional.
He believed Section 45(b)(i)(c) would allow for warrantless searches by finance inspectors in certain circumstances.
Although the hearings were, according to committee chairperson Yunus Carrim, meant to be limited to these issues, some stakeholders raised other matters related to the Bill and insisted the Bill gave unfettered powers to banks.
This, Basa noted, was patently incorrect if the Bill was read in totality, noting that banks were subject to the requirements of the Bill, which would regulate oversight on their accounts.
“We have no power or mandate over the Financial Intelligence Centre, which is a statutory body and this Bill does not give commercial banks carte blanche in the treatment of clients. Any narrative to the contrary is simply incorrect and inaccurate and only serves to create uncertainty at a time our country needs policy certainty,” said Basa MD Cas Coovadia.
He added that combatting public and private sector corruption, money laundering and the financing of terrorism, was essential to a conducive banking environment that benefits and serves all South Africans.
“We urge Parliament’s Standing Committee on Finance to find that the concern expressed by the President is without basis and to refer the Bill back to the President for its signing into law, as a matter of extreme urgency,” Coovadia said.