FirstRand says it closed Gupta accounts on money-laundering fears
FirstRand is the first lender to publicly disclose reasons for severing links earlier this year with Oakbay Investments, a company controlled by the Gupta brothers
FirstRand said on Monday suspicions of money-laundering were behind its decision to cut ties with a business family linked to allegations of influence-peddling in President Jacob Zuma’s government. FirstRand is the first lender to publicly disclose reasons for severing links earlier this year with Oakbay Investments, a company controlled by the Gupta brothers. The Gupta family, whose businesses range from media to mining, and Zuma have repeatedly denied wrongdoing. The Guptas’ lawyer said on Monday suspicions of money-laundering were groundless. In an affidavit seen by Reuters, dated November 29, FirstRand CEO Johan Burger said his company had closed Oakbay bank accounts to comply with international regulations. "These practices and standards require us to take steps to prevent FirstRand being used for money-laundering and other unlawful activities," Burger says in the court papers. The Gupta family lawyer, Gert van der Merwe, told Reuters it took the accusations of money-laundering...
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