The bill has been sitting on Zuma’s desk for months despite its importance in ensuring South Africa’s system of financial regulation complies with its international obligations.
The bill will impose more onerous obligations on banks to know their clients and in particular exposed persons such as politicians‚ government officials and directors of companies contracting with government.
Zuma said yesterday certain provisions of the bill did not pass constitutional muster.
Critics of his long delay in promulgating the law have claimed he is trying to protect those benefiting from corruption‚ such as the Guptas.
The Financial Intelligence Centre Act was the instrument behind the decision of four major banks to terminate their banking relationships with Gupta-owned companies.
The Presidency said Zuma had raised concerns about provisions in the bill relating to warrantless searches‚ which according to him fell short of the constitutional standard required for the provision not to unjustifiably limit the right to privacy.
The Council for the Advancement of the South African Constitution wrote to Zuma warning him to sign the amendment bill‚ failing which he risked court action. It launched its legal action earlier this month.
