RESERVE Bank governor Lesetja Kganyago is not involved in politics. But he is classed by his bank as a "politically exposed person" because he makes decisions that can have significant political implications.The governor pointed this out last week when he was asked about the Reserve Bank’s recent decision to fine five banks whose money laundering and terror-financing monitoring systems were found to be weak.It wasn’t that the banks did anything wrong: simply that they had not quite done enough right when it came to systems and procedures.In financial markets that have become increasingly globalised, complex and high risk, the demands on banks’ compliance systems everywhere are ratcheting up. It is not just regulators who are demanding that banks make sure their clients are not involved in any dodgy dealings. It is the banks’ own counterparties — the other banks with which they do business — that are insisting on compliance.The fines, and the governor’s comments, therefore, help to p...
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