The four big banks must hand over Gupta records to Zondo inquiry

Standard Bank, First National Bank, Nedbank and Absa will all have to hand over records of the Gupta’s deals with state-owned enterprises (SOEs) after deputy chief justice Raymond Zondo’s commission of inquiry into state capture subpoenaed them, Sunday Times reports.

The commission is hoping to gain insight into exactly how the controversial family received funds from SOEs including Transnet, Denel and Eskom.

The banks will be expected to produce all records of transactions involving Gupta-owned companies such as Oakbay Investments, Optimum Coal Mine, Tegeta and VR Laser Services as well as Gupta-linked companies such as Trillian.

READ MORE: Absa closed Gupta accounts over large, unexplained transfers

Standard Bank’s retired head of legal Ian Sinton testified recently before the commission, about why his bank decided to shut down business accounts linked to the controversial Gupta family.

Sinton testified that banks are obliged by the Financial Intelligence Centre Act to report suspicious transactions, with the failure to do so being a criminal offence.

He added that media had been a driving force behind his knowledge of the Gupta’s alleged corruption.

ABSA, meanwhile, testified that they had begun reviewing the Gupta-owned business bank accounts as early as 2014 as explosive media reports on the controversial family increased, and did a risk assessment of the accounts, the state capture commission heard today.

Absa cut off banking ties with the Guptas in December 2015. FNB, Standard Bank and Nedbank followed suit in 2016.

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