Why did it take Absa Bank Limited 15 months, or 312 days, to close the Guptas’ bank accounts?

6 March 2017

Today, I wrote to Maria Ramos, Chief Executive of Barclays Africa Group Limited, requesting a reasonable explanation for why it took Absa Bank Limited (“Absa”) 15 months, or a full 312 working days, to close the Guptas’ bank accounts in South Africa.

An affidavit, submitted by Yasmin Masithela on behalf of Absa, in the Minister of Finance versus Oakbay Investments (Pty) Ltd case, which is before the High Court of South Africa, Gauteng Division [Case No. 80978/16], reveals that it took the bank:

- 13 months, that is a full 272 working days, from the time the decision was taken to terminate the banker-client relationship with the Guptas’ (18 November 2014) to the notice of termination of the banker-client relationship with the Guptas’ (18 December 2015); and

- 15 months, that is a full 312 working days, from the time the decision was taken to terminate the banker-client relationship with the Guptas’ (18 November 2014) to the termination of the banker-client relationship with the Guptas’ (16 February 2016).

The affidavit provides a detailed explanation of why the Guptas’ bank accounts were closed, as well as a detailed explanation of the process followed in closing the Guptas’ bank accounts, but does not provide any explanation as to why it took so long to close the Guptas’ bank accounts.

What the delay in closing the Guptas’ bank accounts suggests is that Absa may have failed to comply with processes, procedures and controls to manage money laundering and terrorist financing risks, including its obligations in respect of “Politically Exposed Persons”, in terms of the Banks Act (No. 94 of 1990) and the Financial Intelligence Centre Act (No. 38 of 2001).

In the end, the real question, in the controversy surrounding the closure of the Guptas’ bank accounts, is not why the Guptas’ bank accounts were closed, but why it took so long for the Guptas’ bank accounts to be closed, by inter alia Absa.

Issued by David Maynier, DA Shadow Minister of Finance, 6 March 2017