Tue, 26 May 2020

Judge Raymond Zondo, the chairperson of the judicial commission of inquiry into state capture, said on Monday that the commission would have to alert the SA Reserve Bank and other authorities to probe cases of cash-in-transit providers operating like unregulated banks.

Zondo's remarks came after he heard evidence of Kalandra Viljoen, the former owner of Gauteng-based cash-in-transit business Asset Movement Financial Services (AMFS).

The inquiry, which has been investigating allegations of state capture, corruption and fraud at state entities since August 2018, is currently focusing its attention on the airline industry.

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Hofmeyr put it to her that her company was acting like a bank, and not a cash-in-transit service. The evidence leader noted that traditional cash-in-transit services did not receive deposits into their accounts. In addition they usually pick up and drop off cash for bodies such as retailers.

AMFS, meanwhile, used to have money paid directly into its account and then pay this money out to its clients in the form of cash. It did not check the source of the funds or verify what businesses its clients were involved in apart from a visit to their premises.

Hofmeyr asked Viljoen whether she was aware that conducting the business of a bank without a licence is a criminal offence. Viljoen said she was not aware of this.

Zondo, in conclusion, said it was necessary to alert the SA Reserve Bank and the Financial Intelligence Centre to look into cash-in-transit companies acting like banks.

"It may well be that there are serious transactions that are illegal where the money might not be traced after some time," he said.

The inquiry continues.

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