Stakeholders to weigh in on FIC Bill

Cape Town - The Progressive Professionals Forum (PPF), Black Business Council, the Banking Association and the Centre for the Advancement of the South African Constitution will be among the stakeholders making representations to Parliament on Wednesday on amendments to the Financial Intelligence Centre Act.

In November last year, President Jacob Zuma sent the FIC Bill back to Parliament, citing concerns over the constitutionality of the draft legislation.

The first inkling that Zuma would not sign the bill into law emerged when the PPF’s Mzwanele "Jimmy" Manyi (also a former government spokesperson) submitted a letter to the president, in which he set out his organisation’s objections to the bill.

READ: What the #FIC is going on?

The PPF is concerned that the bill violates the constitutional rights of affected South African citizens – the so-called domestic prominent influential persons and their families and associates. 

The PPF argued that the draft legislation would transfer the judicial authority from law enforcement agencies into the hands of banking and financial institutions, and said there are other unintended consequences such as the infringement upon individuals’ choice of career.

“How can it be that merely by virtue of being a CEO or CFO that has dealings with government, one becomes a suspect?” Manyi said in his letter to Zuma at the time.

Warrantless searches under scrutiny

The president’s reservations, however, are about the bill’s provision for warrantless searches of suspect individuals.

Wednesday’s public hearings, which will be heard by MPs who are members of the Standing Committee on Finance, will centre by and large on the warrantless searches issue.

READ: ‘Court capture’ crusader says FIC Bill is in breach of Constitution

Late last year, senior parliamentary legal adviser Advocate Frank Jenkins referred MPs to a Constitutional Court ruling that said warrantless searches or searches with a warrant are for the “legislature” to decide.

Advocate Ishmael Semenya (SC) will attend Wednesday’s public hearings for the Standing Committee on Finance and Advocate Jeremy Gauntlett will also be present.

National Treasury as well as South Africa’s banking authorities have expressed concern over the delay in signing the FIC Bill into law.

Fin24 earlier reported that South Africa could face a public warning from the Financial Action Task Force (FATF) – an international body that monitors compliance with anti-terrorism and anti money-laundering regulations.

READ: SA faces public rebuke over FIC Bill delay

At its June 2016 meeting, the FATF gave South Africa a deadline extension from September to February to finalise the FIC Bill.

National Treasury’s Ishmael Momoniat said South Africa would do its best to “explain” the delay to the FATF in the light of the president’s constitutional reservations.

Banking authorities on the other hand warned that the delay could tarnish South Africa’s relationships with their global peers.