OpinionPoliticsState Capture

The FICA Bill is ‘legalised’ state capture

BY Mxolisi ka Nkomonde

The financial industry in South Africa is centred around the big 5 banks which collectively held 89,2% of the total banking assets as at 31 December 2015[1] seeks to make itself a law enforcement agency through a covert instrument called Financial Intelligence Centre Amendment Bill (FICA).

The banking cartel in South Africa has been tyrannical in its practices since the dawn of majority rule in 1994 by abusing the lack of competition in the industry with high bank charges, lack of transparency and inability to protect clients from various fraudulent schemes such as the R99 debit order racket. The government which was under the leadership of former President Thabo Mbeki attempted to quell some of the abuses by the banking cartel through a Competition Commission inquiry on banks charges in 2008. The inquiry came to a conclusion that the big 4 banks run a cartel [2] but 8 years later the banking industry in South Africa remains the same with the exception of Capitec which has made inroads on the “lower end” of the market[3].

The banking industry is regulated by the South African Reserve Bank where Absa (Barclays Africa), Standard Bank, Nedbank and First Rand have shares which effectively means the banking cartel regulates itself[4]

More powers to be given to an already existing problem in South Africa through FICA

  • The Bill continuously refers to “accountable institution” which includes the banking cartel that regulates itself through ownership of SARB thus its unaccountable to the public
  •  The Bill gives executives and board members of financial institutions including the banking cartel powers to do anti-money laundering and counter-terrorist financing investigations but it is coded as “Risk Management and Compliance Programme”
  •  The Bill disproportionately focuses on public servants on Schedule 3A and Schedule 3B

The Financial Intelligence Centre Amendment Bill (FICA) is practically a form of policing of Blacks who work within the state and Blacks who do business with government since thats where broad based economic empowerment regulations are religiously followed. The Bill has absolutely nothing to do with combating terrorist funding and money laundering since it disproportionately focuses on public servants where potential criminal transactions were R1.2 Trillion for 2014/2015[5] fiscal year while the private sector had potential criminal transactions to the value of R8.3 Trillion for 2015[6]


[1] Bank Supervision Department Annual Report 2015 (Page 3) [2] The Banking Enquiry Report to the Competition Commissioner by the Enquiry Panel (Page 53 – 84) [3] https://businesstech.co.za/news/banking/138243/capitec-is-now-the-third-biggest-bank-in-southafrica/ [4] South African Reserve Bank Shareholder Index as at 31 December 2016 [5] Statistcs South Africa : Financial statistics of consolidated general government 2014/

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  1. Thanks Mxolisi for your analysis. Should the President sign the bill he will have betrayed the nation. We have law enforcement agencies in the land why the bill now?

    1. Hi Stalin

      I was on a debate on economic liberation yesterday and one of the issues that came up was the laws that are being introduced or have been introduced that stand in the way of progress and economic freedom.

      One of the laws that hinders economic freedom (although I dont believe being indebted is freedom) National Credit Act which effectively deprives the majority Blacks from credit.

      For the first time in our democratic history, we have groups which monitor these issues and people who monitor and write about it.

      We live in exciting times.



  2. This FICA bill from my understanding is nothing but financial tyranny at best, Banks already have unfettered powers, as we have seen in the cases in media. who regulates them ?oh wait, the South African Reserve Bank which in itself is a private institution answerable to its shareholders, which some happen to the banks themselves? * Financial Tyranny in the guise of a red herring called “Money Laundering”

    1. I must say I love the readers of UnCensored. So Woke as it is is said these days.

      Thanks for your take on the issue Mandilakhe.



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