Tag: FICA

FNB blocks customer credit cards without warning

Source: MyBroadband

Numerous FNB customers are complaining that their credit cards have been blocked on Sunday without prior warning.

Reports of the issue were widespread on Twitter and FNB’s Downdetector page, which saw a big spike in complaints from around 13:00.

Customers reported that attempting to transact with their credit card would result in the payment being declined and the following text message being sent to them:

Outstanding documents are required to comply with FICA. Please call the number on the back of your card.

Multiple Twitter users claimed this notification appeared to be coming out of the blue, as they had not been asked to provide FICA documents before Sunday.

“Went shopping only to find out my CC [credit card] transactions are being declined pending FICA documents! What FICA documents? I was never asked for FICA documents! Absolutely ridiculous,” one Twitter user said.

“Credit card transactions declined. The card was working fine yesterday,” another customer stated.

“Both myself and my wife’s cards declining apparently due to outstanding FICA documents. No communication from FNB. We have no access to our money. Can’t pay for fuel or food,” a third user stated.

The problem appeared to be impacting both in-person and online transactions.

One MyBroadband reader was also experiencing the issue, with his credit card account showing R0 available despite not having reached its limit.

According to Downdetector’s outage map, the majority of reports were coming from Gauteng, Cape Town, Durban, and Port Elizabeth.

On Monday, FNB confirmed to MyBroadband that the issue has been resolved.

“The bank sincerely apologises to impacted customers for the inconvenience caused,” Labuschagne said.

It did not elaborate further as to what caused the glitch.

 

Reserve Bank fines two banks R77.5m

By Sibongile Khumalo for News24

The South African Reserve Bank in 2017 imposed a total of R77.5-million in administrative fines to China Construction Bank and VBS Mutual Bank for failure to comply with the Financial Intelligence Centre Act.

The Bank Supervision Department annual report released on Tuesday indicated that the banks were penalised for “not identifying and verifying their customers’ details, not keeping records of customer identification, inadequate controls and working methods pertaining to the reporting of suspicions transactions”.

The heaviest fine of R75m was given to the Johannesburg branch of China Construction Bank Corporation – R20m was suspended for a period of three years.

The Venda-based VBS bank, which made headlines in 2016 when it granted former president Jacob Zuma a R7.9m loan for his Nkandla home, was fined R2.5m, of which R2m was suspended for a year.

The Reserve Bank last year placed VBS under curatorship, as details of its financial management came to light.

The report stated that the decision to impose the sanctions was not based on any evidence that the banks had “facilitated transactions relating to money laundering and/or the financing of terrorism”.

Illegal schemes

It revealed that its assessment of financial institutions showed that banks still needed to strengthen their controls when it comes to compliance with the FIC Act.

Compliance with Pillar 3 disclosure system, which require banks to publish easily accessible information that reflects their financial conditions, performance, risk exposure and corporate governance policies and policies was also a key area of focus.

During the 2017 period, a total of 28 illegal deposit-taking schemes were under review, 21 of them were carried over from the previous years, while 7 were new investigations. There are currently 19 schemes still under investigation, slightly higher than the 21 cases in 2016.

The bank said the regulation of schemes was done to ensure “the safety and integrity of the banking system and to protect the general public”.

Market uncertainty

According to the report, macroeconomic conditions continue to be unsupportive of meaningful and robust growth in credit extension, as appetite for household credit also remains sluggish.

Credit extension to the corporate sector grew modestly.

“Although household debt metrics continue to show signs of improvement, household debt remains persistently high.”

The report also noted that market uncertainty was seen throughout the year, both at global and domestic level.

The rand weakened over the period by 1.3%, and bonds also weakened with the depreciation of the currency.

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