THE #RacistBanksMustFall movement in SA has called for legislative intervention in the wake of a US executive order designed to prevent banks from closing accounts based on political or religious beliefs, reports The Star.

#RacistBanksMustFall, applauded the move by US President Donald Trump to combat debanking practices, urging SA to follow suit and introduce similar protections.

The Trump administration’s executive order, expected to be signed this week, aims to tackle the practice of debanking, where financial institutions deny services to individuals or businesses based on political affiliation.

The order directs federal banking regulators to remove vague ‘reputational risk’ guidelines that have often been used to justify account closures, particularly targeting conservative and crypto industry figures in the US. 

Reuters reported Trump as saying he believes that banks, including JPMorgan and Bank of America discriminate against him and his supporters. Nedbank’s 2023 annual report revealed it closed accounts of nearly 200 individuals and businesses.

Campaign leader of #RacistBanksMustFall, Crown Prince Adil Nchabeleng said: ‘SA banks have been selectively racist and are using the banking institution to target and silence political dissents.’

In SA the SCA in Bredenkamp v Standard Bank set the standard for the unilateral termination of the bank-customer relationship on the grounds of reputational risks.

The judgment sets out principles banks have relied on when terminating relationships with customers.

Over the years these principles have been challenged in courts.

 The FSCA is moving forward with the Conduct of Financial Institutions Bill, which aims to provide a fair process for bank account closures, following a series of delays.

Full report in The Star