Hi Andy,
You are 100% correct wrt FICA here in SA.
The bank only has copies, and like most banks here will admit nothing. Yes they have apologied for any inconvenience caused, but maintain they never had my FICA documents.
They will never admit to losing them, because they are charged under an Act of Parliment to keep them safe and not to disclose them any 3rd party. Admitting to losing them would cause the bank major issuses. They are not going to admit it.
I have no objection to taking in the documents ( I think it is a load of cr@p though) but if it stops bad people doing bad things I'm for it.
My major complaint was the bank didn't inform me - just closed the account. It would have been nice to send an Email, letter or phone -but nothing.
I'm still complaining, if I go too far they will just offer to close the accounts, which I may well do, but only when it is convenient for me to do so.
With regards giving loans on copies of ID documents - no financial institute will do that, if they do they would have broken the law, they have to see the original.
Something will happen eventually.

DaveH