South Africa’s financial sector is seeing major shifts this month, from the South African Reserve Bank (SARB) taking a direct stake in PayInc to the South African Revenue Service (Sars) celebrating a significant court ruling in its R5.3 billion damages case against Sasfin Bank.
Together, these developments signal a tightening of financial oversight and a step toward modernising South Africa’s banking and payments systems.
According to BusinessTech, the SARB has officially acquired a 50% shareholding in PayInc, formerly known as BankservAfrica, marking a strategic move to ‘modernise South Africa’s payment system’.
PayInc, which is Africa’s largest clearinghouse, has long played a central role in the country’s financial ecosystem. Founded in 1972 as the Automated Clearing Bureau, it rebranded to BankservAfrica in 2010 and recently evolved into PayInc as part of its new digital focus.
Capitec and Investec have also joined as direct shareholders, alongside Absa, FirstRand, Nedbank, and Standard Bank. The SARB’s involvement means PayInc now functions as a national payments utility, jointly owned by the central bank and commercial banks.
PayInc CEO Stephen Linnell described the move as the result of a joint effort by the SARB, the banking industry, and PayInc to overhaul the nation’s payment infrastructure.
‘With the SARB as a direct shareholder, PayInc is better positioned than ever to deliver modern, affordable, and inclusive payment services that will unlock growth across our economy,’ said Linnell.
He added that the transaction marks the beginning of a new age for payments in South Africa, enabling a more secure and efficient digital payments ecosystem that promotes financial inclusion.
Meanwhile, Moneyweb reports that Sars has welcomed a high court judgment in its ongoing R5.3 billion damages claim against Sasfin Bank, calling it ‘significant progress’ in holding financial institutions accountable for facilitating illicit financial flows.
The case, first filed in December 2023, accuses Sasfin of assisting taxpayers in illegally exporting undeclared funds out of the country. The Gauteng High Court in Pretoria heard arguments in October and handed down its judgment on 3 November.
According to Sars, the court upheld some of Sasfin’s legal exceptions while dismissing others, a mixed outcome that allows parts of the case to proceed to trial.
Importantly, the judgment confirmed that Sars are entitled by law (FSRA, section 278) to seek compensation for losses resulting from breaches of financial regulations
Sars Commissioner Edward Kieswetter said the ruling ‘affirms a clear statutory remedy to pursue losses arising from breaches of financial sector laws by banks and other institutions.’
Sasfin Bank, on the other hand, welcomed parts of the ruling.
‘The two most significant claims against Sasfin have been found to have no merit,’ CEO Michael Sassoon said.
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