11 June 2019

South Africa: Reserve Bank Official - 'It Is Unclear If, or How, Standard Bank Missed the Gupta Red Flags'


Cashflows through the Gupta-linked Homix, a company fingered in a multimillion-rand kick-back scandal involving state-owned entities, had all the hallmarks of money laundering. While Standard Bank operated two Homix accounts, it also banked a cluster of related Gupta entities that either paid or received payments from the company: On Monday, the State Capture commission was confronted with a question about how well the bank knew this particular letterbox customer.

Standard Bank was among the country's major financial institutions that dumped the Guptas and related companies amid the growing State Capture scandal in 2016.

It confirmed having banked several companies that have now been fingered in broader money-laundering investigations by the South African Reserve Bank -- among those, the notorious letterbox company Homix.

On Monday morning, 10 June 2019, the State Capture commission was briefly dealt with a question about whether, or else how, the bank had missed major red flags in the account activity of Homix.

Shiwa Mazibuko of the South African Reserve Bank's financial surveillance unit, unpacked a string of dodgy transfers involving Homix and various other companies which he says were typically layered to disguise the origin or ultimate beneficiaries of cash emanating from state-owned enterprises.

Homix, a...

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