WEDNESDAY, 10.30AM
PARLIAMENT’s finance committee on Tuesday approved a draft Bill giving wide powers to the Reserve Bank and the finance minister jointly to disclose confidential information about SA’s banking system.
Urging the committee to adopt the SA Reserve Bank Amendment Bill, which will make the Reserve Bank one of the most open to scrutiny in the world, Finance Minister Trevor Manuel said transparency is vital, especially in light of the threat posed by money laundering.
The Reserve Bank’s legal team had tried on several occasions to give the Bank’s private clients a veto on disclosure, but the committee rejected the proposals and opted for a liberal approach to disclosure. The result is that unlimited disclosure of information will be allowed, even where this breaches the privileged relationship between the Bank and its clients.
The minister and the governor will have to agree in writing to the disclosure, and only after consultation with the affected client.