Latest news with #UnathiKamlana
IOL News
20-05-2025
- Business
- IOL News
Understanding the Conduct of Financial Institutions Bill: A new era for financial regulation
The long-awaited Conduct of Financial Institutions Bill – which is set to strengthen regulatory power over financial institutions – aims to bring digital money into its ambit. Image: IOL The long-awaited Conduct of Financial Institutions (COFI) Bill – which is set to strengthen regulatory power over financial institutions – aims to bring digital money into its ambit. The new law, which has been in the works for more than a decade, will finally be 'submitted to Cabinet shortly for approval for tabling in Parliament,' the Financial Conduct Authority (FSCA) said in response to written questions. However, over the past 10 years, FinTech has dramatically transformed financial services, moving from a disruptive force to a mainstream innovation. And it has advanced faster than the law – with technology set to always be at least one step ahead of regulations. FSCA Commissioner Unathi Kamlana is on record as saying that 'as the financial sector continues to evolve, so too must the regulatory framework that governs it. Improving industry practices is essential to ensuring that financial institutions consistently deliver fair customer outcomes, regardless of the models or channels used to provide financial products and services.' In stating this, Kamlana was speaking specifically about the COFI Bill. 'The COFI Bill represents a legislative response to these challenges, aiming to transform the regulatory landscape into one that is more outcome-focused and principles-based,' he said. Kamlana also said that the rise of FinTech, digital banking, artificial intelligence, digital assets, and decentralised finance are reshaping how financial services are delivered and accessed'. He noted that these advancements offer opportunities for growth and inclusion, but also pose challenges, such as cybersecurity threats, algorithmic biases, unethical AI-driven decisions, fraud and even financial exclusion, that regulators and industry leaders must address. In response to questions, the FSCA added that the Bill 'adopts a principle-based approach. In other words, it contains high-level principles that financial institutions must adhere to, to ensure the desired outcomes in the financial sector'. The story of the Bill is, in itself, a long and complex one. In 2013, the draft of the Financial Sector Regulation Bill was published for consultation, followed by the release of a discussion document outlining the draft market conduct framework used for stakeholder engagement. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. 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Advertisement Next Stay Close ✕ Ad Loading The Financial Sector Regulation Bill is closely related to COFI as they are both key components of South Africa's financial sector reform alongside the so-called 'Twin Peaks' legislation, which resulted in oversight of the financial sector being handled by two entities and not just one and was introduced in 2017. The FSCA was created in 2018 as a result of 'Twin Peaks'. As the FSCA explained on its website: 'The COFI Bill is a critical development that will shape the future conduct framework and many of the FSCA's current conduct regulatory framework projects have some dependency on the promulgation of the COFI Bill.' The Bill was approved by Cabinet for publication for public comment towards the end of December 2018 and published for public comment from a few days after that through to the start of April the following year. The FSCA explained that the next draft of the Bill was finalised and published on September 29, 2020, for a second round of public comments until the end of October that year. 'The Bill was revised to address comprehensive comments received from the public as well as from the State Law Advisers and resubmitted to the Office of the Chief State Law Advisers in December 2024. Once tabled in Parliament, the Bill will [be] published for public comment again by Parliament,' it said. The FSCA is not the only entity concerned with regulating the digital realm when it comes to financial services. In 2016, a FinTech Working Group was developed under the auspices of several regulators, including the South African Reserve Bank and FSCA, to 'work together as South African financial sector regulators to demystify the regulatory landscape, provide a space for safe experimentation and actively advance innovation'. It hasn't published any news since 2022 though, when it said its regulatory sandbox is open for applications. IOL
IOL News
15-05-2025
- Business
- IOL News
Misleading Narratives and Sensational Claims: The Flawed Logic Behind the Banxso Scandal Story
Explore the troubling allegations against Banxso in the wake of a Moneyweb article, as we dissect the evidence—or lack thereof—behind sensational claims and the potential consequences for media integrity. The recent Moneyweb article titled 'Banxso refund scam escalates into sexual blackmail: Victim speaks out' presents a harrowing tale of digital manipulation and emotional trauma. However, while the human impact of such crimes deserves sympathy, the article makes a significant leap — suggesting, without hard evidence, that Banxso is somehow connected or responsible for the actions of the criminal network behind this scam. This inference rests almost entirely on an alleged use of the same email address once associated with Banxso, any further indicators as to how the perpetrators gained the victims confidence have not been shared within the article. That threadbare link forms the foundation for a serious public accusation, yet no concrete evidence is offered to support a claim of corporate wrongdoing. 'There's a big difference between a bad actor impersonating a platform and the platform being complicit,' noted a regulatory advisor familiar with South Africa's financial services licensing regime. 'From what I've seen, the story relies on implication, not investigation. 'By the article's very inferences the FSCA are guilty of running a WhatsApp scam not the victims of identity theft.' This is in clear reference to an alert issued on the FSCA's (Financial Service Conduct Authority) social media pages a few weeks ago where they chastised the usage of an AI generated deep fake video impersonating their commissioner Mr. Unathi Kamlana to sell a trading tool called NBSG Securities or Nedbank Securities. The notice further highlights this is a scam and the use of logos and names is unauthorised. Banxso has consistently denied any role in this or any other scam. Through its attorneys, Hanekom Attorneys, the company has reiterated that no data breach has occurred, and that no client data has been compromised or sold. 'Our client has not sold, shared, or otherwise disseminated client data to unauthorised third parties. Any suggestion to the contrary is false and defamatory… Further, our client has not experienced any confirmed data breach to date,' reads a formal letter submitted to the publication prior to release. They further assert 'In the circumstances, whilst our client again unequivocally denies the allegations and reaffirms the robustness of its security protocols, we formally request that any future enquiries be submitted in a bona fide manner, clearly delineating new and verifiable information warranting a response. Failing which, our client reserves the right to decline any further engagement on the subject matter.' Yet Moneyweb published the story — one in a string of articles targeting Banxso — while giving minimal weight to these denials. This raises questions about intent, especially given the timing of events.
IOL News
09-05-2025
- Business
- IOL News
Is your investment safe? FSCA warns against deepfake trading scams on WhatsApp
The FSCA is aware of a deepfake video on WhatsApp impersonating the FSCA Image: File photo. The Financial Sector Conduct Authority (FSCA) has issued a stern warning following the circulation of a deepfake video on WhatsApp, which falsely claims to feature FSCA Commissioner Unathi Kamlana endorsing a fraudulent AI trading tool. Deepfakes are AI-created videos, images, or audio that mimic real individuals or events, making it challenging for the public to tell the difference between authentic and fabricated content. The FSCA has confirmed its awareness of a deepfake video circulating on WhatsApp that promotes an AI trading tool known as NBSG Securities, also referred to as Nedbank Securities, which falsely claims to offer a 20-30% higher return on investment. The authority emphasised that the unauthorised use of its and Nedbank's branding is a scam and urged the public to ignore the misleading video. "The FSCA is aware of a deepfake video on WhatsApp impersonating the FSCA and its Commissioner, Mr. Unathi Kamlana, to promote a new artificial intelligence (AI) trading tool called NBSG Securities or Nedbank Securities that promises a 20-30% higher return on investment," the FSCA said. "Please note that this unauthorised use of FSCA and Nedbank icons is a scam and should be ignored by the public." Last month, the FSCA revealed that it had issued a warning about a similar scam involving an entity or individuals known as J532-NBSG, who solicited funds by falsely claiming to be affiliated with Nedbank or Nedbank Stockbrokers on Facebook and WhatsApp. "The FSCA has noted a marked increase in these AI-generated impersonators and deepfakes claiming to be associated with authorised financial services providers or prominent South Africans. "The FSCA is of the view that this is being done to lend a false sense of legitimacy to the operations of the impersonators. It is a criminal offence to conduct unauthorised business and against the law to impersonate other businesses or make false claims of association."
IOL News
09-05-2025
- Business
- IOL News
Is your investment safe? FSCA warns against deepfake trading scams on WhatsApp
The FSCA is aware of a deepfake video on WhatsApp impersonating the FSCA Image: File photo. The Financial Sector Conduct Authority (FSCA) has issued a stern warning following the circulation of a deepfake video on WhatsApp, which falsely claims to feature FSCA Commissioner Unathi Kamlana endorsing a fraudulent AI trading tool. Deepfakes are AI-created videos, images, or audio that mimic real individuals or events, making it challenging for the public to tell the difference between authentic and fabricated content. The FSCA has confirmed its awareness of a deepfake video circulating on WhatsApp that promotes an AI trading tool known as NBSG Securities, also referred to as Nedbank Securities, which falsely claims to offer a 20-30% higher return on investment. The authority emphasised that the unauthorised use of its and Nedbank's branding is a scam and urged the public to ignore the misleading video. "The FSCA is aware of a deepfake video on WhatsApp impersonating the FSCA and its Commissioner, Mr. Unathi Kamlana, to promote a new artificial intelligence (AI) trading tool called NBSG Securities or Nedbank Securities that promises a 20-30% higher return on investment," the FSCA said. "Please note that this unauthorised use of FSCA and Nedbank icons is a scam and should be ignored by the public." Last month, the FSCA revealed that it had issued a warning about a similar scam involving an entity or individuals known as J532-NBSG, who solicited funds by falsely claiming to be affiliated with Nedbank or Nedbank Stockbrokers on Facebook and WhatsApp. "The FSCA has noted a marked increase in these AI-generated impersonators and deepfakes claiming to be associated with authorised financial services providers or prominent South Africans. "The FSCA is of the view that this is being done to lend a false sense of legitimacy to the operations of the impersonators. It is a criminal offence to conduct unauthorised business and against the law to impersonate other businesses or make false claims of association."
Bloomberg
19-03-2025
- Business
- Bloomberg
South Africa Weighs Plan for $4.8 Billion in Unclaimed Benefits
South Africa's financial regulator is working on a plan to ensure billions of rand in unclaimed retirement, severance and death benefits are distributed. Financial Sector Conduct Authority Commissioner Unathi Kamlana said that 88 billion rand ($4.8 billion) was owed to South Africans but had not been claimed.
