The June 30 deadline banks have to re-identify their clients could be extended, Finance Minister Trevor Manuel indicated on Friday.
During an address to the National Assembly on his department’s budget vote, Manuel said he was aware that the ”Know you Customer” campaign had caused some controversy.
”On the time-line I have sought further advice and I will respond in the near future.”
He dismissed concerns that the documentation requirements were too onerous.
”… I am advised that most enquiries are based on misunderstandings and I am confident that account holders and banks will find the regulations are sufficiently accommodating.”
The campaign is a requirement of the Financial Intelligence Centre Act, which says that accountable institutions cannot transact with clients that have not been re-identified.
”Banks and other accountable institutions need to know their customers as an important aspect of preventing their institutions from being abused by criminals.”
The minister said he was determined that South Africa would meet the standard to prevent money laundering and increase compliance by the banking sector. – Sapa