Bank of Baroda joins peers in closing Gupta accounts
The Bank of Baroda is set to close the Gupta family’s bank accounts by the end of March, following pressure from its parent company in India.
Between February and September 2016, First National Bank, Absa, Standard Bank and Nedbank closed the bank accounts of the Gupta family and their companies. The Bank of China followed suit.
The family are viewed as “politically exposed”.
Finance Minister Pravin Gordhan disclosed in court papers filed in October 2016 that R7bn in “suspicious and unusual” transactions involving members of the Gupta family and their companies had been reported to the Financial Intelligence Centre.
Business Day understands that the Bank of Baroda is con- tractually obliged by its parent company to close the family’s accounts by the end of March.
The parent company is a member of the Financial Action Task Force (FATF) — as are China and SA.
The FATF is a global policymaking body set up to combat money laundering and terrorist financing. It has given SA three months to enact the Financial Intelligence Centre Amendment Bill that will ensure the country aligns itself with global best practice.
Bloomberg reported on Thursday that the Bank of Baroda had already started closing Gupta family’s accounts.
The companies linked to the family include Oakbay Investments, Oakbay Resources and Energy, Tegeta, JIC Mining Services, TNA Media, the African News Network, VR Laser and Sahara Computers.
Oakbay said on Thursday reports that the Bank of Baroda in SA was closing its accounts were “not correct” and claimed this was part of a smear campaign and an attempt to “put pressure” on the bank.
“This is just more evidence of a campaign, by some, against Oakbay, based, as usual, on nothing more than innuendo,” it said.
Gupta family lawyer Gert van der Merwe said on Thursday no notice had been received,” Van der Merwe said.
“We have not received any notice in this regard from the bank and will investigate.”
The Bank of Baroda in SA referred queries to its head office in Mumbai, which could not be reached for comment.
The pressure on the family mounted after Deputy Finance Minister Mcebisi Jonas said they had offered him former finance minister Nhlanhla Nene’s job ahead of his removal in 2015.