Mutual Banks Act Circular 1/2025: Status of Previously Issued Circulars

P O Box 427 Pretoria 0001 South Africa
370 Helen Joseph Street Pretoria 0002
+27 12 313 3911 / 0861 12 7272 www.resbank.co.za 1 Ref.: 15/8/2/1 MBC1/2025 To: All mutual banks and auditors of mutual banks Mutual Banks Act Circular issued in terms of section 4(4) of the Mutual Banks Act 124 of 1993 Status of previously issued circulars Executive Summary In order to ensure that mutual banks and auditors of mutual banks are in no doubt as to which previously issued circulars remain effective, the Prudential Authority (PA) will annually confirm their status. Addressees should note that contrary to the process whereby the status of circulars are annually confirmed, directives issued in terms of section 4(6) of the Mutual Banks Act 124 of 1993 (Mutual Banks Act), remain effective until such time that they are withdrawn in writing by the PA in terms of section 4(7) of the Mutual Banks Act.

1. Introduction
   1.1 All previously issued Mutual Banks Act circulars are deemed to be withdrawn, terminated or
   replaced except if such a circular is to remain effective and is then accordingly confirmed in Mutual Banks Act Circular 1 of that year. The circulars that remain effective will retain their original numbers and dates.
2. Effective Mutual Banks Act circulars issued in terms of the Mutual Banks Act
   The circulars listed below remain effective. Accordingly, mutual banks and auditors of mutual banks are hereby requested to retain a copy of these circulars. Circular Brief details
   2.1 Mutual Banks Act Circular 1/2014 Interpretation of specified provisions of the Act
3. Effective Directives issued in terms of the Mutual Banks Act
   Section 4(6) of the Mutual Banks Act prescribes that the PA may, in writing, after
   consultation with the relevant mutual bank or auditor of the mutual bank, issue a directive to such a mutual bank or auditor of a mutual bank, either individually or collectively, regarding the application of the Mutual Banks Act. The PA issued a number of directives in terms of section 4(6) of the Mutual Banks Act. It is hereby confirmed that all such issued directives will remain effective until such time as they are withdrawn in writing by the PA in term of section 6(7) of the Mutual Banks Act.

CONFIDENTIAL
2
CONFIDENTIAL
3 Directive Brief details
3.1 Directive 1/2022 Matters relating to fit and proper assessment requirements pertaining
to directors and executive officers
3.2 Directive 2/2022 Matters relating to fit and proper assessment requirements pertaining
to beneficial owners
3.3 Directive 3/2022 Matters relating to domestic money or value transfer services
3.4 Directive 1/2023 Auditing requirements in terms of regulation 6 of the Regulations
relating to Mutual Banks
3.5 Directive 1/2024 Minimum regulatory requirements relating to mutual banks’ fund
liquidity contributions to the Corporation for Deposit Insurance
4. Acknowledgement of Receipt
4.1 Kindly ensure that a copy of this Mutual Banks Act circular is made available to your
institution’s auditors. The attached acknowledgement of receipt, duly completed and signed by both the chief executive officer of the institution and the said auditors, should be returned to the PA at the earliest convenience of the aforementioned signatories. Fundi Tshazibana Chief Executive Officer Date:
The previous circular issued was Mutual Banks Circular 1/2024, dated 27 February 2024.