A NEW law that will result in scrutiny of all politicians and their family members when transacting through the banking system has stalled on the desk of President Jacob Zuma, who is being petitioned not to sign it into law. The Financial Intelligence Centre (FIC) Amendment Bill will require banks to perform enhanced due diligence on the "politically exposed" in line with international obligations. It is these provisions that are already being applied by banks responsible for the withdrawal of banking services for the politically connected Gupta family and its companies. In a related development, there is discussion in government circles including in the Cabinet that the FIC, which monitors suspicious as well as cash transactions above a certain threshold, be moved out of the Treasury and become part of the government’s security cluster. The suggestion is contained in the Cabinet memo submitted by Mineral Resources Minister Mosebenzi Zwane to the Cabinet for deliberation. The develo...
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