THE BANKING COUNCIL
PREVENTION OF CORRUPTION BILL
We understand from press reports that the draft Prevention of Corruption Bill currenfly in the parliamentary process imposes another statutory reporting requirement on employees relating to corrupt transactions. These reports must be made to the SA Police Services.
This reporting requirement duplicates existing reporting obligations under the Financial Intelligence Centre Act1 2001. The specifics in the FIC Act are based on international best practice1 and provide appropriate protections to the reporting institution and/or individual. The actual practicalities of reporting to the FIC have also improved since its inception in February 2003.
On the other hand, banks experienced considerable difficulties when they had to report suspicious money laundering or proceeds of crime transactions to the SAPS under prior legislative requirements (Proceeds of Crime Act, Prevention of Organised Crime Act). The SAPS were never really resourced to fulfil this role, and many times their inexperienced attempts to investigate the reports resulted in clients becoming aware that their bank had reported them.
Given that an existing statutory reporting requirement exists in the FIC Act. that the FIC has to be resourced to receive and analyse these reports, that there are appropriate safeguards protecting the reporting institutions and individuals, and that there are appropriate measures for the FIC to pass information to the investigative authorities, we recommend that the new Prevention of Corruptions Bill utilise the provision of the FIC Act for the reporting of corrupt transactions.