National Treasury has said it sees very little risk of SA banks losing access to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, the messaging network over which international payments are made, according to News24.

This comes after The Sowetan reported that Finance Minister Enoch Godongwana told bank CEOs at a recent Banking Association SA meeting that the government was concerned SA could lose access to the payments system.

The concerns stem from moves by some US lawmakers to impose sanctions on certain SA Government officials amid deteriorating diplomatic relations between Pretoria and Washington.

‘In our view, there is little to no risk of withdrawal or removal of SA banks from the SWIFT network,’ National Treasury said in response to questions.

‘SWIFT is an important global payment and market infrastructure based in Belgium. It is therefore under the jurisdiction of EU financial sector regulatory authorities. SA financial sector regulatory authorities enjoy an excellent relationship with European Union regulatory policy authorities, who have a deep understanding of the high quality and effectiveness of SA’s financial sector regulatory environment,' it said.

Republican Congressman Ronny Jackson has introduced a Bill before US lawmakers that seeks a full review of Washington’s relationship with SA.

The draft legislation alleges SA has aligned with countries hostile to US foreign policy interests.

Treasury said the SA regulatory authorities are continuously working on improving the effectiveness of domestic and regional payment systems.

This includes working to diversify and strengthen links with all major trading partners to drive down the costs of payments to boost growth and employment, National Treasury added.

Full News24 report