LWPYA2 Slide Deck Week 1
LWPYA2 Slide Deck Week 1
LWPYA2 Slide Deck Week 1
Instruments of Payment
LWPYA2-44
Eduvos (Pty) Ltd (formerly Pearson Institute of Higher Education) is registered with the Department of Higher Education and Training as a private higher education institution under the
Higher Education Act, 101, of 1997. Registration Certificate number: 2001/HE07/008
Prescribed
Textbook
Sharrock, R. (ed.) 2016. The Law of Banking
and Payment in South Africa. Cape Town: Juta.
You will go into breakout rooms & discuss first-, second- and
third-tier banks.
First Tier
Second
Tier
Any other
Concluding activity
Utilising money ‘repurchase declared by
deposited (or agreements’ as Registrar to be
Taking deposits interest/income a business i.e business of a
Soliciting/
from general earned on it) sale of assets bank (after
Advertising for
public as a eg. granting for money with consultation
deposits
regular feature; loans, undertaking to with Governor
investment, buy asset from of Reserve
financing the buyer at a Bank) – by
future date notice in Govt
Gazette
Questions for Discussion
Discussion
5 Activities Exclusions
Discuss Exclusions
Wide definition =
Virtually all spheres
Narrow definition =
of law that may be
Those fields of law that
relevant to bankers
apply exclusively or
mainly to
Introduction
Two broad fields of banking law:
Private banking law
In groups:
Discuss what is meant by
the diversity of South African
banking law
The sources of SA Banking Law
In categorising the sources of South African banking law, one should distinguish between primary sources
and secondary sources (also known as authoritative sources and persuasive sources)
• The primary sources contain those principles that are binding on South African courts as well as the parties
who appear before them and to whom the South African law applies
• In short, the primary sources are the sum total of those sources that are generally referred to as ‘South
African banking law’
• The clearest example of a primary source is legislation (statutes) enacted by parliament
• The secondary sources do not contain any principles that are binding per se on South African courts, or the
parties appearing before them
• However, secondary sources are important in that they may be consulted by a South African court to
interpret explain and augment the primary sources if, and when, they are unclear, underdeveloped or not
developed at all on a certain point
• The best example of a secondary source of our banking law is foreign law, of which English law was for a
long time regarded as the most important
The Primary sources
Legislation
Indigenous Judicial
law precedent
The
Primary
sources
Roman- Custom or
Dutch law trade usage
Roman
law
The Secondary sources
Secondary
sources
Basel Committee
European
on Banking English Law
Community Law
supervision
Activity
In groups:
Discuss the different sources of
South African
banking law
The South African Banking System
Sec 10(1)(c)(i)
Statutory
regulation
The Financial The National
Advisory & Credit Act
Intermediary Services
Act
The Consumer
Protection Act
Activity
In groups:
Discuss the different acts that
regulates banking
The Banks Act
• To protect the public against any losses they might suffer due to the
lack of solvency or possible malpractices on the part of banks
Twofold purpose • To safeguard the public against unfair competition by institutions that
offer similar services to banks
• The Reserve Bank, the Land Bank, the Development Bank of Southern
Does not apply to the 6 institutions Africa, the Corporation for Public Deposits, the Public Investment
Corporation Limited, and any mutual bank
South Africa
Applies to every transaction with the RSA, except if exempted by the Act
• 1. Right to equality
• 2. Right to privacy
• 3. Right to choose
Money laundering: The concealment of the origins of illegally obtained money, typically by means of transfers
involving foreign banks or legitimate businesses
Terrorist financing is criminalised by POCDATARA (Protection of Constitutional Democracy against Terrorist and
Related Activities Act)
The collection or provision of property with a view to commit a terrorist act is criminalised