Des van Rooyen, leader of the African National Congress breakaway party, Makgotla Ka Pitso (MKP), has called for immediate banking reforms, criticizing financial institutions for what he describes as the “weaponisation of reputational risk.” Speaking at a press conference in Johannesburg on Monday, Van Rooyen raised concerns over how banks have used reputational risk as a pretext to close accounts and restrict access to essential financial services.
Van Rooyen argued that this practice disproportionately affects certain individuals and organizations, often without clear justification or due process. “We are witnessing financial institutions exerting tremendous power with minimal oversight, undermining fairness and justice,” he said.
His remarks come in the wake of several high-profile cases where businesses and political figures claimed their accounts were closed unjustly, fueling growing debates about the accountability of banks. Van Rooyen emphasized the need for stronger transparency and regulatory measures to prevent abuse of the reputational risk framework.
The MKP leader proposed reforms such as independent oversight of bank decisions on account closures and clearer guidelines for applying reputational risk policies. He also advocated for public consultations to create a balanced approach that safeguards both the integrity of the financial sector and individuals’ rights.
While critics argue that banks must retain the ability to manage legitimate risks like money laundering and corruption, Van Rooyen insists that current practices often lack fairness and infringe on economic freedoms.
The call for reform has generated mixed reactions. Some support it as a move toward greater fairness, while others caution that it may weaken necessary safeguards in the financial system. The MKP intends to present its proposals to Parliament in the coming months.