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Cape Town - Already on April 15 2016 he requested the Financial Intelligence Centre (FIC) to investigate allegations that the Gupta family had illegally removed assets, including large amounts of cash, from South Africa, member of Parliament and DA shadow minister of finance David Maynier told Fin24 on Sunday.
"To have done nothing would have amounted to allowing the accused to flee the crime scene with the proceeds of the crime," said Maynier.
However, he said since then the FIC has given him "the runaround" and refused to confirm or deny that an investigation is underway regarding the Guptas.
"It's, therefore, a positive development if unofficial reports suggesting an investigation into the allegations surrounding the Guptas being conducted by the SA Reserve Bank (Sarb) and the FIC are true," said Maynier.
Earlier this year Maynier had posed a question in Parliament to Finance Minister Pravin Gordhan about whether the FIC has conducted or is conducting an investigation into allegations of money laundering and any other specified matter in respect of members of the Gupta family or known close associates of them.
In a written response dated May 6 Gordhan said "the short answer is that the FIC is not an 'investigating authority', and is, therefore, not mandated to undertake nor conduct investigations to gather evidence to prove criminal conduct in a prosecution".
Gordhan pointed out that legal provisions in the Financial Intelligence Centre Act prevent the FIC from disclosing any information on what matters it may be working on or not. Contravention of these provisions is an offence and punishable by imprisonment for 15 years or to a fine not exceeding R100m.
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"As Minister of Finance I, therefore, cannot confirm or deny whether the FIC has information relating to the specific persons or entities previously mentioned at its disposal, nor whether the FIC has or has not made information available to law enforcement authorities in support of investigations of allegations of money laundering against the specific persons or entities," Gordhan said in his written reply.
"The FIC analyses information reported to it and at its disposal and supplies financial intelligence on financial transactions of reported persons or entities, but not evidence, to competent authorities, such as investigating law enforcement authorities, statutory supervisory bodies and state security agencies, to facilitate the administration and enforcement of the laws of the Republic."
He said "these competent authorities, as lawful recipients of FIC issued financial intelligence", in turn undertake independent criminal investigations, supervisory inspections, or other actions, respectively, within their respective legal mandates.
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"Accordingly, the sharing of information by the FIC with other competent authorities enables them to better discharge their respective responsibilities in the administration of the criminal justice system, the financial and non-financial sector regulatory systems, and the protection of national security, in the Republic," said Gordhan.
He added that the FIC Act currently does not require a financial institution to pay special attention to any category of customers. The FIC Act also does not contain any provisions which require financial institutions to apply a risk-based approach to the manner in which they manage customer relations.
"In this respect the FIC Act is not in line with current international standards on measures to combat money laundering and terrorist financing," said Gordhan.
He pointed out that Parliament is considering amendments to the FIC Act to give effect to the requirements of the international standards.
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