ECONOMIC FREEDOM FIGHTERS STATEMENT ON THE FINANCIAL INTELLIGENCE CENTRE BILL.

27 January 2017

The Economic Freedom Fighters believes that the Financial Intelligence Centre Amendment Bill is a step in the right direction in the fight against massive financial crimes and illicit financial flows that define South Africa. For a very long time, South Africa has been a playground of financial criminals who are involved in money laundering and many other instances of illicit financial flows without consequences.

The EFF has been a champion of clear and decisive legislation against financial crimes in South Africa including proposals such as Anti Tax Avoidance Bill, Central Illicit Financial Flow Information Task Team amongst others, and strongly believes that although it is not all encompassing, the FICA Bill is a step in the correct direction. All South Africans should partake in the discourse of the FICA deliberations, and should not be like the ANC Professionals Forum led by Jimmy Manyi (and Guptas) that bases itself on myths and imaginations. A key component of the ANC Professionals Forum myths presented to the Standing Committee in Parliament yesterday are the following;

1) That the bill criminalizes black people.

2) The bill gives banks power.

3) The bill closes bank accounts of black people 

4) The bill is not compliant with the constitution

5) The bill will make the ANC to be in financial disadvantage.

The facts are as follows;

1) Majority of companies, particularly multinational corporations across all sectors, that are party to financial crimes are not owned by black people, but are owned by a group of few white males. A recent report released by Oxfam confirmed that three billionaires in South Africa emerged as owners of the same wealth as the bottom 50 percent of the population.

2) Claims that FICA Bill gives banks power is utterly disingenuous and unfounded. FICA Bill does not give banks any power, including power to carry out searches or act on behalf of the Financial Intelligence Centre. Instead the powers to carry out searches or act on behalf of the Financial Intelligence Centre is the supervisory body envisaged under the new twin pick legislation which will report to South African Reserve Bank. All banks must do is to monitor the accounts of prominent people including government officials from president to municipal managers, and all prominent individuals in the private sector as well. 

3) Mr. Zuma’s concerns about the constitutionality provisions relating to warrant-less searchers in the of the bill is unfounded and all legal opinions has found that the Mr. Zuma’s concerns are baseless and have no legal standing, and that the Bill is in fact Constitutional.

4) The attempt by Mr. Manyi to hijack the FICA Bill to try and solve the Guptas problems of closed bank accounts is a clear demonstration of desperation. Banks must adhere to the law regardless of the individuals' concerns and bring to the attention of the relevant authorities cases where there is reasonable suspicion of financial crimes. 

5) To further say that due to FICA Bill, the ANC will be broke, Mr. Manyi unconsciously confirming a view that the ANC is funded of ill-gotten gains and people are stealing from the poor to fund ANC billion rand campaigns and secret propaganda war rooms.

6) The Black Business Council should never allow to be used by Gupta puppets to protect Gupta interests. They should instead cleanse themselves of all Gupta elements and pursue a progressive black agenda, not ANC factional agenda that defies the Parliamentary majority and organisational guidance. 

The EFF is of the view that the State in its entirety should increase its qualitative capacity to fight financial crimes and get compliance from all financial institutions. We made this point in the parliamentary submission on how to tackle profit shifting, base erosion and transfer pricing in South Africa.

FICA Bill is long overdue since its introduction by the former Minister of Finance Nhlahla Nene in October 2015, and as a country we cannot allow for any further delay. The Bill was adopted by overwhelming majority of members on the 18th of May 2016 without objection by any political party, including all members of the ANC who were present in the House. 

The transformation of the financial sector should be pursued by all sectors of society, but not be based on myths that seek to protect certain fractions of capitalists in South Africa. If Politicians and influential people earn their money justly and from non-corrupt activities, they will have no difficulty with legislation that fights corruption and money laundering.

The EFF will during the course of 2017 and beyond sponsor and support progressive legislation that criminalizes capitalists who have been stealing money from South Africa for a very long time. 

Statement issued by the Economic Freedom Fighters, 27 January 2017