Watchdog pushes for Fica date

LETTER TO GIGABA: CORRUPTION WATCH ASKS FOR UPDATE ON CRUCIAL LEGISLATION

New Bill will be an important weapon in the fight against money laundering.

Corruption Watch has written to Finance Minister Malusi Gigaba requesting the date on which the Financial Intelligence Centre Amendment (Fica) Bill – one of the most important legislative weapons in the fight against money laundering – will be implemented.

The watchdog organisation said the letter was copied to Yunus Carrim, chairman of parliament’s standing committee on finance.

“Gigaba is responsible for determining the date on which the legislation must commence, but Corruption Watch is concerned that sufficient measures might not have been put into place in order for the legislation to become effective before the next review of the Financial Action Task Force (FATF), and whether these deficiencies will result in SA failing to meets its FATF obligations.

“The FATF holds its next plenary session from June 21 to 23 and had delayed making a public statement on South Africa’s Fica progress until after that meeting.”

The FATF monitors compliance with antiterrorism and antimoney-laundering regulations.

The Bill was finally signed into law by President Jacob Zuma in April after he sent it back to the National Assembly over concerns about searches without warrants.

The law provides for ongoing monitoring of people’s business relationships and sources of wealth and funds, as well as those of their family and associates .

The Democratic Alliance had previously raised concerns with the implementation of the law, alleging that Gigaba may delay it because of Zuma’s close ties to the controversial Gupta family.

“What this means is that President Jacob Zuma and his most important clients, the Guptas, are going to feel the heat as their business relationships, sources of wealth and sources of funds are subjected to ongoing monitoring by financial institutions in SA,” DA spokesperson David Maynier