SA faces warning over Fica delays
Even a mild rebuke from the task force could have significant consequences for SA, say banking industry sources
SA will need to explain itself to the Financial Action Task Force plenary meeting in February and could be slapped with a warning for failing to sign into law amendments to the Financial Intelligence Centre Act, said Treasury deputy director-general Ismail Momoniat in an interview on Monday. Even a mild rebuke from the task force could have significant consequences for SA, say banking industry sources, as it would raise concern among foreign regulators and banks about SA’s commitment to vigilant financial regulation. This in turn would have a ripple effect throughout the economy since correspondent relationships between banks are vital to effect payment for exports and imports. The international task force, which monitors compliance with antiterrorism and money-laundering regulations, at its June meeting gave SA an extension from September to February to finalise the bill, failing which the organisation could issue a public statement against SA, Momoniat said.
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