Hain calls for criminal investigation of banks helping Guptas

UK politician and former anti-apartheid activist Peter Hain yesterday called for a criminal investigation of international banks headquartered in the UK for their alleged role in laundering billions of rands for the Gupta-family.

Speaking in the UK’s House of Lords yesterday evening, Hain said the money-laundering transactions he wanted UK authorities to investigate related to the transfer for funds from several South African banks to accounts in Hong Kong and Dubai.

The funds, which were transferred through multiple transactions into different accounts, were then apparently transferred into accounts within the UK.

According to Hain he has called on the UK government to press financial authorities in Hong Kong and Dubai to cut all links with the Guptas and Zumas, referring to President Jacob Zuma and his family. He said the alleged money-laundering by the Guptas would be raised in the European parliament, with an investigation to be conducted into European banks allegedly involved with the family.

In September, Hain wrote to the UK’s Chancellor of the Exchequer, Philip Hammond, urging him to task law-enforcement authorities to track down an estimated R7 billion thought to have been laundered through the Guptas’ international networks. He specifically asked that UK banks HSBC and Standard Chartered, along with the Bank of Baroda, be investigated.

Yesterday Hain told parliamentarians that he had proof of the transactions.

“The information shows illegal transfer of funds from SA made by the Gupta family over the last few years from their South African accounts, to accounts held in Dubai and Hong Kong. Many of these transactions, are legitimate – but many, certainly, are not,” he said.

Hain, pictured, said he also had information that some of the banks were still conduits for the corrupt proceeds.

He called for an amendment’s to UK legislation to introduce a “failure to prevent” money-laundering offence.

“My main focus today is whether this will help deal with the massive money-laundering being organised from the very top of government in SA, and the Presidency itself. SA is the victim today, but unless we deal decisively with the financial crime implications for Britain as well, next there will be another sovereign country and yet another – with dire consequential instability for Britain and the global economy. In which case, sophisticated criminal networks, such as the Guptas and the Zumas, will have the last laugh.”

He added that money-laundering “almost always requires the complicity, whether witting or unwitting, of financial institutions; in this case, some of those are headquartered in Britain which are now being investigated by the Serious Fraud Office, the Financial Conduct Authority and the National Crimes Agency.” – Business Day, EWN