Resistance against impunity movement condemns SA banks' discrimination

THE Resistance Against Impunity Movement (RAIM) has issued a resolute condemnation of South African banks for their ongoing practice of arbitrarily closing accounts under the controversial banner of “reputational risk.”

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This troubling trend has notably targeted Black individuals and Black-owned businesses, serving as a tool of economic exclusion and financial sabotage against those striving for meaningful participation in the nation's economy.

The disarray within South Africa's financial sector is starkly underscored by a recent decisive action taken by the United States Office of the Comptroller of the Currency (OCC). The OCC has eliminated the use of reputational risk as a criterion for banking decisions, highlighting how such a vague and subjective measure can lead to abuse and unjust denial of financial services to legitimate individuals and enterprises.

In stark contrast, South African banks continue to utilise this excuse to perpetuate racial and economic discrimination.

This matter transcends banking; it signals a profound political and economic crisis. The unjust closure of accounts belonging to Black entrepreneurs, professionals, and organisations under the guise of reputational risk constitutes a deliberate attempt to stifle economic participation, fortifying structural inequalities and ensuring that wealth remains concentrated among a privileged few.

The consequences of this practice are far-reaching and severe:

Economic Sabotage of Black Enterprise: