FirstRand closed the Guptas’ bank accounts because it suspected they were being used for money laundering, the banking group said in a High Court affidavit.<\/p>\n
The Sunday Times reported that the affidavit was the first to be filed in the Pretoria High Court\u00a0in response to an application from Finance Minister Pravin Gordhan.<\/p>\n
Gordhan wants the court to declare that the government has no authority to intervene in the decision by the big four banks – Absa, FNB, Nedbank, and Standard Bank – to\u00a0no longer do business with the Guptas.<\/p>\n
In the affidavit, FirstRand CEO Johan Burger wrote that they terminated the\u00a0business relationship because of the associated reputational and business risks.<\/p>\n
Burger said they have an obligation to comply with international best practices, as it is expected from the SA Reserve Bank.<\/p>\n
Apart from its obligations under South African law, FirstRand also has to keep UK and US regulations in mind – due to transactions and counter-party relationships not being limited to South Africa.<\/p>\n