Cabinet welcomes Fica Bill’s passing

They also discussed what was needed to reverse the downgrades

THE cabinet has welcomed the signing into law of the Financial Intelligence Centre Amendment (Fica) Bill, saying it will contribute to efforts to fight illegal financial activities.

Addressing the media after a cabinet meeting, Communications Minister Ayanda Dlodlo said through the bill South Africa would be aligned to international interventions that fight money laundering and the financing of terrorism.

“The bill will also contribute to strengthening the transparency and integrity of the South African financial system and make it harder for criminals involved in tax evasion, money laundering and illicit financial flows to hide using the South African financial systems.

“It forms one of a number of instruments we have as a country to fight white-collar crime in both the private and public sectors,” Dlodlo said.

President Jacob Zuma signed the Fica Bill into law about two weeks ago, after Parliament had made minor changes to it.

This was after Zuma referred the bill back to Parliament, citing concerns he had about warrantless searches.

Dlodlo said Finance Minister Malusi Gigaba would consult with stakeholders on the formulation of regulations that will give effect to the law.

“I’m not sure when the minister will finalise them,” she said, adding that Gigaba had not given a time frame.

“There will be consultation with all stakeholders that will oversee the implementation of Fica… The regulations will ultimately be presented to Parliament,” she said.

The cabinet also discussed what was needed to reverse the recent ratings agency downgrades.

“The cabinet reiterated that it remains committed to the fiscal trajectory outlined in the 2017 Budget; the implementation of reforms to improve governance in state-owned companies; the maintenance of the expenditure ceiling; and ensuring the stabilisation of government debts,” Dlodlo said.

She also said the credit rating agencies would be visiting the country this month and next, as well as in August or September.

Dlodlo said Gigaba was scheduled to brief the media on the discussions he has had with ratings agencies during his visit to the US, and their misgivings.

“He has tried his best to allay concerns and fears that no new policy is to be introduced because a new minister is appointed,” Dlodlo said in reference to Gigaba’s visit to the International Monetary Fund.

Meanwhile, the Labour Department was expected to look into other measures to be imposed on companies that did not comply with transformation in labour market.

“Small fines have proved not to be effective. Companies prefer to pay the fines rather than comply with legislation,” Dlodlo said.

Earlier this week, the 17th commission employment equity report was released and showed a slow pace of transformation.

“The report demonstrates that African people, women and persons with disabilities remain severely under-represented in all aspects of employment equity,” Dlodlo said.