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FIC Bill: Zuma has one of two choices

Cape Town – Parliament's Standing Committee on Finance passed amendments to the Financial Intelligence Centre (FIC) Bill on Tuesday after three weeks of public hearings, legal opinions and deliberations. 

The bill will now be referred to President Jacob Zuma who has one of two choices – either sign it into law, or refer it to the Constitutional Court to ascertain if it passes constitutional muster. 

Yunus Carrim of the African National Congress, who is chairperson of the committee, told journalists that two senior counsel members, Advocates Ishmael Semenya and Jeremy Gauntlett, said the provision of warrantless searches (which Zuma questioned) was indeed constitutional in the bill’s original form. 

“Although the committee could choose to return the bill as is, we decided to clarify a few things,” Carrim said. 

READ: BBC, PPF don't speak for ANC on FIC bill - Carrim

In the amended version there is now clarity that FIC inspectors will not carry out searches that lead to criminal prosecutions, and will only be concerned with compliance with the act. 

“Warrantless searches,” Carrim said, “can only take place in specific circumstances and we set out the behaviour of inspectors. We also elaborated on the need to observe people’s rights to privacy and dignity.”

It is however worrying that people seem to think the FIC Bill gives more power to the banks. “Actually, it doesn’t,” Carrim said. 

“People are confusing the roles of the banks with that of the FIC, which is a supervisory body.” 

More measures for consumer protection

Carrim admitted government needs more measures to avoid abuse by banks. “We’re aware that people feel banks are using regulation and legislation... not consistent with the aim of financial sector regulation laws. And this issue has been reinforced by the claims of collusion among banks.” 

The public’s concerns about the banking sector will be addressed when Parliament hosts public hearings on March 14 about transformation and deracialisation of the banking sector. 

READ: Banks get bashed in battle over SA financial system 

The aim of the public hearings is to encourage dialogue, consider how far we’ve come in terms of the financial sector charter, discuss the monopoly of the four big banks in the country which account for more than 90% of market share and look into the possibility of new entrants, such as the Postbank. 

“This search for transformation does not come from a reckless populism which will in any case undermine the interests of the poor,” Carrim said. 

Good or bad timing? 

Carrim said the Competition Commission’s investigation into bank collusion has nothing to do with imminent public hearings on the financial sector. 

“The Competition Commission started their inquiry in 2015. I’m not sure the Competition Commission even knew about the proposed public hearing. There’s really no tied relationship between the hearings and the commission’s investigation,” Carrim said. 

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