This is according to Marius Coetzee, CEO of Ideco Biometrics , a company that has helped some of the largest institutions in South Africa, including major banks, implement the biometric security systems they use to interact with the home affairs system.
"The quantum of the increase and the way home affairs has chosen to implement it do not make sense," Coetzee said in an interview with TechCentral on Monday.
"It goes against the rationale justifying why identity verification is a critical element in securing businesses, safeguarding identities and getting South Africa off the Financial Action Task Force FATF grey list," he said.
Legislation such as Fica the Financial Intelligence Centre Act and Rica the Regulation of Interception of Communications and Provision of Communication-related Information Act requires banks, telecommunications providers and other consumer-facing entities to verify their clients' IDs against the home affairs database in an effort to fight money laundering, fraud and other white-collar crime in South Africa.
Only Nedbank said it was reviewing the matter but said it "remains committed to constructive engagement" and will "continue to monitor developments in this space".