Signing of FICA bill "at least one positive message"

President Jacob Zuma finally signed the bill onto law, after previously raising concerns regarding the constitutionality of warrantless searches contained in the bill. 

The bill was unanimously passed by Parliament earlier this year.

Cas Coovadia, managing director of the Banking Association of South Africa, says BASA is relieved that President Zuma has finally signed the bill into law.  

"It's a pity that it had to take so long, that we had to put ourselves in a position where Financial Action Task Force had to warn us that if we didn't do it by June we would be delinquent. 

"But we are extremely relieved. It now at least sends out one positive message amid some of the problems we've got." 

The law is designed to combat money laundering, and will ensure that prominent people are subject to enhanced scrutiny by the banks.

The legislation requires senior bank officials to approve the accounts of prominent, influential people and obliges banks to establish the source of funds, as well as monitor these accounts on a regular basis.

"The signing also enables a risk-based approach to combating these activities, so that bank clients who are less susceptible to such activities will be subject to lighter touch regulation and those significantly susceptible to such activities will be subject to stronger oversight," Coovadia says.