When South African Reserve Bank Governor stood up to speak at a business breakfast yesterday his words sent a ripple through the local money markets and casino world. Tito Mboweni’s caused the Rand to lose 1% against the US dollar within minutes and, when talking about non-monetary matters, concern in the casino industry. In the eyes of Mr Mboweni, casinos are not helping to catch money launderers.

The cause of contention between the Reserve Bank and the casinos is the laundering of bank notes dye stained during heists. Derek Auret, chief executive of the South African Casino Association, countered the accusation made by the Governor, insisting that casinos actively assist in apprehending money launderers as well as abiding by the Financial Intelligence Centre Act (Fica) requirement to report suspicious transactions. South Africa’s property and vehicle markets are known to be sources of money laundering activity.

Peermont Global is suing the Reserve Bank in an attempt to force it to honour dye-stained notes as legal tender. The Bank has so far refused to exchange R220,000 (US$29,786) put through Peermont’s casino bill validators, which do not distinguish between dye stained and clean bank notes. The company, and Derek Auret, refuted the statement made by Mr Mboweni that cashiers exchanged notes for tokens at the casino cash desks.

Tito Mboweni helped to draft the Employment Equity Act but expressed frustration that many competent black people recruited and trained for the public sector soon leave to take up positions in the private sector. He praised his Afrikaner staff for working hard and staying on to become experts. Of major concern to the Reserve Bank is the need to move large amounts of cash from Pretoria around the vast country, and its vulnerability to heists. (E-09.15.06)

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