The standing committee on finance called a number of weeks ago for oral presentations and written submissions on the Banks Amendment Bill, recently tabled, which will amongst a number of issues align the Banks Act, 1990 with the Companies Act, 2008 and provide that a contravention of the Financial Intelligence Centre Act is a cause for suspension or cancellation of registration of a bank.
These hearings are now down to take place now that Parliament has re-commenced. Dates are awaited.
In the proposed Bill, the word “bank” will be extended to include representative offices and the Bill will also considerably update the Banks Act where it refers to other legislation; amend definitions and update wording where practical applications in the banking industry and financial world have changed.
Parliamentarians were told when briefed on the new Bill by Roy Havemann, chief director at Treasury, that work had been going on with current amendments since 2009 resulting in the current Bill now tabled – intensive consultation with the banking industry having taken place all the time. The Bill as it stands was finally gazetted in November last year.
Some banks, Havemann said, might now have to come up with more capital as a result of new tiered capital requirements; unimpaired reserve funds settings and levels of high quality liquid assets would have to be re-set, affecting sections 70,70A, 72 and 79 of the Banks Act.
Interesting is the fact that in terms of the new legislation, banks will have to change the nomenclature of positions given to bank officials which conflict with the Companies Act. The word “director” is one example.