BBC accuses banks of closing members’ accounts without giving reasons
Commercial banks came under attack in Parliament on Wednesday for closing the bank accounts of Black Business Council (BBC) members without giving any reasons. BBC president Danisa Baloyi told Parliament’s finance committee during a public hearing on the Financial Intelligence Centre Amendment Bill that Parliament was delegating authority to banks, which could do what they pleased. She said that the bank accounts of "hardworking" BBC members were being closed by banks without reasons being given and in violation of their rights. They had no way of defending themselves Baloyi told MPs. Her claims were strongly rejected by Banking Association SA MD Cas Coovadia who emphasised that the bill did not give banks the power to undertake inspections on behalf of the Financial Intelligence Centre (FIC) and other regulatory authorities. He also rejected Baloyi’s assertion that the bill gave banks carte blanche to treat their clients as they wished.
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