President Zuma is holding off signing the new Fica bill passed by Parliament.
For months, South Africans have watched the standoff between the Treasury and the Presidency unfold, with much of the public’s focus on Minister Pravin Gordhan’s longevity in Cabinet. This has more broadly resulted in a crisis in government – one which has slowed its attempts to pass more comprehensive legislation to tackle financial crime and the financing of terrorism.
The Financial Intelligence Centre Act's Amendment Bill, intended to update South Africa’s anti-corruption and anti-money-laundering laws, was passed by both the National Assembly and the National Council of Provinces in May, but has still not been signed into law by President Jacob Zuma.
This is despite concerns that South Africa’s current legislation may not meet obligations set by the Financial Action Task Force (FATF) – a multinational anti-money-laundering body of which South Africa is a member – and that terrorist groups may be accessing funds and recruiting members in South Africa.
In addition to this, in March 2014 the bribery working group of the Organisation for Economic Co-operation and Development (OECD) raised concerns over the limited investigation and prosecution of foreign bribery in South Africa.