Serious Bad Banking Practice_Possible indication of Liquidity issues

There is something very wrong at FNB which suggests wider issues in the bank operations and implications for the future of the bank and the reputation of South-African’s banking system.

FBN appear to be diverting client funds to support their own liquidity issues under the mask of compliance.

Last week I sent some funds from a personal account held at Barclays Bank London to a business account held at FNB for one of my companies of which I’m a director. There has then followed several days of what can only be described by the London bankers as serious cause for concern:

1) FNB denied and refused having received the funds for seven banking days. This was despite me having confirmed and provided proof of remittance and a reference from Barclays bank. I personally spoke to three senior officers in the Forex department that denied the bank had received the funds

2) Only after persistent and necessarily confrontational follow-up calls did FNB confirm that they had been in receipt of the funds all along.

3) This constant denial caused embarrassment to a number of parties and called into question the integrity of the bank and South-Africa’s banking operations. Well functioning banks ensure all relevant officers are briefed on funds movements both for the management of the bank and to keep customers appraised. The bank clearly lacked the systems and processes to do this or was up to something else.

4) FBN then came back to say that it was a compliance issue in relation to an international card payment for temporary office space that happened 1yr and 2months ago (after which there were several more unrelated international transactions). The present transaction has no correlation to this previous transaction from over 1 year ago

5) So whilst I respect and acknowledge the banking governing structures in the Republic of South Africa, I asked FNB why did they wait for over 1year to ask for compliance documents?

6) Also I asked why had FNB not credited the funds to our business account and then asked for compliance documents underpinning the query? The funds could have been blocked in our account but all would have known that had arrived instead of sitting in some FBN account.

7) FBN passed the blame onto the Reserve Bank requirements.

8) I proposed to FBN that I would write to the reserve Bank to understand why the governing institution waited for such a long time and are they aware the of the damaging way in which the request is being implemented by FBN? Are there missing gaps within the regulatory frame work?

9) EXCUSES AND SILENCE FROM FBN

I’ve had a chance to speak to several people in South African and international banking and all expressed surprise and concern. There seemed few explanations that didn’t involve unbelievable incompetence or cynical management of the banks own liquidity issues.

I feel I'm not alone in this issue ? **********