Three key finance and telecoms reform bills head to parliament

Cabinet clears Cofi, anti-money-laundering and telecoms changes for submission.

Three bills to help define legislative frameworks for the financial and communications sectors were adopted by cabinet last week for submission to parliament.

These are the long-awaited Conduct of Financial Institutions (Cofi) Bill, the General Laws (anti-money-laundering and combating terrorism financing)Amendment Bill 2026, and the Electronic Communications Amendment(ECA) Bill.

The Cofi Bill, which has been in the making since 2018 and subjected to several rounds of public consultation, will create a single, holistic frame work for regulating the market conduct of all financial institutions. The institutions will be required to meet strict fit and proper governance and reporting standards.

“This is part of the government’s broader goal to reform the financial regulation towards a Twin Peaks model. The Twin Peaks model is a regulatory system that splits financial supervision into two distinct authorities: the Prudential Authority for safety and soundness and the Financial Sector Conduct Authority for market conduct and consumer protection,” the cabinet statement says.

“The system creates a ‘safer’ sector that operates in the interest of all consumers. The bill will ensure fair customer treatment, enhance transformation and promote stability. It further supports transformation of the financial sector and requires financial institutions to have policies in place to comply with the Financial Sector Code.

“Also, the bill supports market development and competition by enabling a differentiated approach to licensing to foster the entry of new players such as financial technology.”

The Treasury has also finalised the General Laws (Anti-Money-Laundering and Combating Terrorism Financing) Amendment Bill 2026, which builds on a similar act promulgated in 2022.

It addresses deficiencies in South Africa’s regime identified by the Financial Action Task Force (FATF), which grey listed South Africa in 2023, and strengthens the legislative framework.

FATF is scheduled to conduct a mutual evaluation of South Africa in mid-2026 and conclude in October 2027.
The bill amends the Financial Intelligence Centre Act, Nonprofit Organisation Act, Trust Property Control Act, Companies Act and Financial Sector Regulation Act. The draft bill proposed to allow the Financial Intelligence Centre to share information and to address deficiencies in the treatment of non-compliance with beneficial ownership obligations.

The National Treasury said the two draft bills — the Cofi Bill and the General Laws Bill — were not publicly available yet.

“They will first be scrutinised by the office of the chief state law adviser, and after their certification they will be introduced in the National Assembly. The bills, as introduced, will be publicly available.” 

Also adopted by cabinet was the Electronic Communications Amendment(ECA) Bill, which aims “to increase the level of competition in the telecommunications sector and drive down prices” and “to create an enabling environment for investment with a key focus on reducing regulatory barriers to entry to improve competition and also allow the Independent Communications Authority of South Africa flexibility to regulate the sector”.
The cabinet approved the release of the long-awaited draft Protected Disclosures Bill (Whistleblowers Protection Bill) for public comment. It provides better protection of policymakers and whistleblowers in line with recommendations of the Zondo commission of inquiry into state capture.

“The bill contains proposals to criminalise retaliation and provide psychosocial, legal and financial support to whistleblowers. The bill will broaden the definition of ‘whistleblower’ to include contractors, consultants and members of the public, and it will establish clear procedures for confidential disclosures,” the cabinet statement says.

The cabinet approved the draft AI policy for public comment. It aims to strengthen the government’s ability to regulate and adopt AI while encouraging local innovation, supporting job creation and improving access to AI skills.

The policy recognises that a phased approach should be adopted, as AI deployment and risk profiles differ across sectors.