FINANCIAL SECTOR BILL
Closure of Gupta bank accounts ‘must be explained’
The issue came to the fore with the contentious closure of Gupta bank accounts
The National Assembly’s standing committee of finance has endorsed a National Council of Provinces amendment to the Financial Sector Regulation Bill to require banks and other financial institutions to give reasons for termination of products such as the closure of bank accounts. The issue came to the fore last year with the contentious closure of Gupta bank accounts by four major banks after they detected a number of suspicious transactions. However, members of the standing committee of finance stressed that their endorsement of the council’s amendment had nothing to do with the Gupta matter, but was made because it was a sound move. Treasury deputy director-general Ismail Momoniat said at the meeting of the finance committee on Tuesday that the Treasury also supported the amendment as it would enhance customer protection. Many other countries had enacted similar rights of customers, Momoniat said.
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