Refugees and asylum seekers again able to access bank accounts
From today, refugees and asylum seekers will again be able to access their bank accounts using their refugee and asylum seeker permits issued by the Department of Home Affairs. LHR will seek an order by consent in the South Gauteng High Court directing that such permits should be accepted.
In May 2010, the Financial Intelligence Service (the “FIC”) issued a communication which had the effect of directing banks to no longer accept permits issued to refugees and asylum seekers under the Refugees Act. This led to a number of our clients being denied access to their previously existing accounts and their money withheld by the bank. It also prevented many from opening new bank accounts.
This policy had the danger of driving even more people into informal banking structures, contradicting the very objective and purpose of the legislation.
LHR brought this application on behalf of the Consortium for Refugees and Migrants in South Africa (“CORMSA”) and a number of individual clients to the high court in Johannesburg in September. An interim order was granted on 9 September 2010 which allowed our clients to access their accounts pending the outcome of the main application.
After negotiations, a settlement agreement was reached including:
· Possible amendment to the Financial Intelligence Control Regulations which will allow the use of refugee and asylum seeker permits when conducting banking transactions;
· A new FIC communication which will explain to banks that refugee and asylum seeker permits may be used for financial transactions and how to conduct verification of their authenticity; and
· A verification process to be created by the Department of Home Affairs with the requirement that authorisation may not take longer than 2 business days.
If any of the parties do not comply with the terms of this settlement agreement, LHR will seek to have the matter re-enrolled for hearing.
A similar application is pending in the Cape High Court through the UCT Law Clinic.
LHR is pleased with the results of this application which showed a willingness on the part of government to appreciate the vulnerable position in which refugees and asylum seekers find themselves and to not deny them the tools they need to integrate and support themselves.
For more information, please contact:
David Cote Kaajal Ramjathan-Keogh
Strategic Litigation Unit Refugee and Migrant Rights Project
Lawyers for Human Rights Lawyers for Human Rights
012-320-2943 011-339-1960