Fica bill will boost SA — Ramaphosa
• Legislation means country is open for business, says deputy president
The Financial Intelligence Centre Amendment (Fica) Bill will make SA a blue-chip investment destination, says Deputy President Cyril Ramaphosa. Responding to questions in Parliament on Wednesday, he also said the national minimum wage showed that the government was on a roll.
The Financial Intelligence Centre Amendment (Fica) Bill will make SA a blue-chip investment destination, says Deputy President Cyril Ramaphosa.
He was responding to questions in the National Assembly on Wednesday, when he also said the national minimum wage showed that the state was on a roll in improving workers’ conditions of employment.
The deputy president moved to allay fears that the recent attacks on foreigners would deter investors, saying “South Africans are not xenophobic”.
This week, Parliament ratified the Fica bill three months after President Jacob Zuma sent it back to legislators when concerns were raised about the constitutionality of its provision for warrantless searches.
Once signed into law by the president, Fica will increase scrutiny of the bank accounts of politically exposed individuals including top government officials and business executives.
The bill seeks to strengthen the fight against global financial crime including money laundering and the financing of terrorism, by making it easier for banks to identify owners of companies and accounts — including those of “domestic prominent influential persons”.
Ramaphosa said: “The Fica bill will enhance our stature … they [investors] will see that we are serious in the fight against corruption, money laundering and corruption.
“Investors will look at the country and see we are real competitors. The bill shows SA is open for business. Investors want to invest in countries that subscribe to particular values … this will make us a blue-chip investment destination.”
SA has been under pressure to pass the bill, with eyes now cast on Zuma to sign it into law. The country has since been granted a three-month extension by the intergovernmental body, the Financial Action Task Force, to enact the bill.
The enactment is required for banks to remain part of the international system.
Turning to the minimum wage, Ramaphosa said although the agreed R20 an hour will not wipe out poverty, it was a good starting place.
All key stakeholders, except Cosatu, had signed the agreement. The union federation asked for more time to engage with its central executive. The national minimum wage is due to come into effect in May 2018.
“There are many people whose income is way below this R20. [The minimum wage] is beginning to resonate and build a foundation on which we can have a highly paid workforce in our country.
“The national minimum wage shows that we are on a roll to improve the conditions of employment and workers in the economy,” said Ramaphosa.
The deputy president said SA remained an attractive investment destination, despite the attacks on foreigners.
“We can all agree that the events and incidents over the last few day are sad. South Africans are not xenophobic … we don’t hate foreigners. We have opened our arms to people from other countries, just as they opened their arms when we were pushed into exile.
“We will continue as a government to protect the lives and property of people from other nations, just as we expect them to protect the interests of South Africans in other countries.
“As a government we have been in the forefront of preaching antixenophobic messages. SA is a home for all … it was declared in our Freedom Charter,” said Ramaphosa.
THE BILL SEEKS TO STRENGTHEN THE FIGHT AGAINST GLOBAL FINANCIAL CRIME, INCLUDING MONEY LAUNDERING
SA REMAINED AN ATTRACTIVE INVESTMENT DESTINATION, DESPITE THE ATTACKS ON FOREIGNERS