FNB will close OFAC accounts of foreigners

This was in response to questions relating to its plan to close the account of the pro-Palestine Al Aqsa Foundation of SA (Aafsa)‚ which said it supported more than 1,000 orphans in South Africa every month.

"FNB will take the same decision with any organisation listed on the United States' Office of Foreign Assets Control (OFAC)" said FNB commercial banking chief executive Michael Vacy-Lyle.

The issue arose after Aafsa questioned the banking group's plan to close its account on 31 March this year because it was on the list.

According to Aafsa's website‚ the list enforces "economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes‚ terrorists‚ international narcotics traffickers‚ those engaged in activities related to the proliferation of weapons of mass destruction‚ and other threats to the national security‚ foreign policy or economy of the United States".

Aafsa said it was a legal‚ non-profit organisation registered with the social development department and was compliant with the SA Reserve Bank.

It said FNB claimed it was not compelled to subscribe to global networks which refused to trade with organisations on the list.

"However‚ they asserted their choice to close Aafsa's account. FNB said the decision was based on possible financial losses and international isolation from these networks should they continue their relationship with the Aafsa‚" the organisation's spokesman said.

Aafsa said it had shown the banking group that its name and that on the OFAC list were not the same. The bank had said it should get legal advice on the assertion of mistaken identity.

FNB undertook to reverse the decision if a case of mistaken identity was proved. It agreed to approach the SA Banking Council about this‚ because the situation might arise again with other organisations‚ and it needed to know how to deal with the matter.

"Despite the agreement to further investigate the matter‚ the bank has refused to extend its 31 March deadline for the permanent closure of the Al Aqsa Foundation of South Africa's account‚" it said.

Aafsa had limited transactions‚ with no withdrawal facility and believed no other bank would open an account for it in South Africa.

"This will force a reputable‚ decade-old organisation that supports 1,000 orphans every month to shut its doors‚ thus terminating the only lifeline these children have‚" it said.

Vacy-Lyle confirmed the decision to close the account.

"It has come to the bank's attention that the foundation is expressly listed by the US Department of Treasury‚ [OFAC] and other international sanctions lists. The listing of the foundation has been verified with references‚ inter alia‚ to the addresses contained in the listings documents.

"The international financial community impose stringent obligations in respect of the maintenance of banking relationships with entities listed by OFAC‚ and the decision by FNB to terminate its relationship with the foundation is a consequence of this fact alone‚" he said.

On its website‚ Aafsa describes itself as "providing for the religious‚ cultural and social needs of the poor and needy Palestinians living within the West Bank‚ Gaza‚ Lebanon and Jordan".

Source: Sapa via I-Net Bridge