Johannesburg - The Democratic Alliance has called on the South African Reserve Bank to probe banks' business relationships with the Guptas.
In a statement issued by David Maynier, the official opposition’s shadow minister of finance, the party says it has asked SARB to conduct an investigation into whether certain banks, which had business relationships with the Guptas, complied with all the relevant provisions of the Financial Intelligence Centre Act, especially their obligations to conduct enhanced due diligence of Politically Exposed Persons.
Read: SA banks 'acted alone when dropped Guptas'
Several South African banks recently severed ties with the controversial Gupta family, which is known for its ties to President Jacob Zuma. The Guptas have been accused of “state capture” because of their alleged influence over political appointments, an accusation they have denied.
In the statement, Maynier says “we know certain banks terminated their business relationships with Oakbay Investments and its subsidiaries, including Oakbay Resources and Energy, which are controlled by the Guptas. However, these banks appear to have done so when the political weather changed: they only acted after the political fallout caused by the Deputy Minister of Finance, Mcebisi Jonas’s public statement, on March 16, claiming he had been offered the position of Minister of Finance by the Guptas, weeks before the firing on the Minister of Finance, Nhlanhla Nene, on 09 December 2015.”
Read: Bank closes accounts held by Gupta firm
He adds: “The sudden decision by certain banks to terminate their business relationships with the Guptas raises a serious question: did these banks comply with the relevant provisions of the Financial Intelligence Centre Act before the political fallout and their sudden decision to terminate their business relationships with the Guptas?”
Maynier adds the Act requires banks to take reasonable steps to establish the source of funds, and to conduct enhanced monitoring of business relationships with (1) politically exposed persons; (2) families of politically exposed persons and (3) closely associated persons of politically exposed persons.
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