Pressure mounts for banking sector regulation in SA

THE #RacistBanksMustFall movement in South Africa has called for immediate legislative intervention in the wake of a US executive order designed to prevent banks from closing accounts based on political or religious beliefs.

- PHILIPPA LARKIN and SIPHELELE DLUDLA

Reuters reported Trump as saying he believes that banks, including JPMorgan and Bank of America discriminate against him and his supporters.

In South Africa, banks, including major institutions like Nedbank, have come under fire for selectively closing accounts under the guise of “reputational risk”.

Nedbank’s 2023 annual report revealed that it had closed accounts for nearly 200 individuals and businesses, a practice that critics argue is politically motivated and disproportionately targets dissenting voices.

Among the most high-profile cases is that of Sekunjalo Group, which has fought against the closure of its bank accounts, claiming that the action is part of an ongoing effort to silence politically inconvenient businesses and individuals.