Regulators in the US and Britain are looking into links between South Africa’s Gupta family, the country’s government, and banks they might have used to move money amid an escalating graft probe.
In the US, the FBI has opened a formal investigation into individuals, bank accounts and companies in the US for ties to alleged corruption involving the South African business empire, the Financial Times reported on Thursday, citing people familiar with the matter.
Britain’s Financial Conduct Authority (FCA) and National Crime Agency said they were looking into the matter following a prompt to do so from the finance ministry.
The Guptas and their companies have not been charged with any crime in South Africa, but allegations by government and opposition politicians that they used a friendship with President Jacob Zuma to control state businesses are among many scandals that have dogged Zuma’s presidency.
The Guptas and Zuma have denied any wrongdoing. Gupta family spokesman Gary Naidoo could not be reached for comment and the US Embassy in Pretoria had no immediate comment.
The family — founders of a business empire spanning media, mining and consulting — have been named in leaked e-mails alleging graft in dealing with South Africa’s state-owned companies, which also named several global firms.
The FCA said it was in contact with banks HSBC Holdings PLC and Standard Chartered PLC.
That comes after British lawmaker Peter Hain asked the finance ministry to look into the lenders’ possible ties to the Gupta family and Zuma.
In the British parliament’s upper House of Lords, Hain said South African whistleblowers had told him that HSBC and Standard Chartered among other banks “must have been conduits” for the laundering of around £400 million (US$527.1 million).
Zweli Mkhize, one of several potential candidates to replace Zuma as head of South Africa’s ruling African National Congress in December, said the US and Britain were within their rights to investigate.
“If there is any information suggesting corruption or irregularities, it needs to be investigated across the borders. It should not be restricted to South Africa,” he said.
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