The Financial Intelligence Centre (FIC) is the statutory body administering this legislative framework. This information applies to the institutions included on Schedule 1 of the Financial Intelligence Centre Act, 2001 (Act 38 of 2001). What are the accountable institutions? Accountable institutions include banks, law firms, estate agencies, financial services providers, motor vehicle dealerships, investment and trust entities, exchange control and crypto currency entities, etc. or listed in Schedule 1 of this legislation.
The administrative sanctions that the FIC may impose in terms of section 45C (3) of the Financial Intelligence Centre Act, 2001 (Act 38 of 2001) for non-compliance with the FIC Act is any one or more of the following sanctions:
- A caution not to repeat the conduct which led to the non-compliance
- A reprimand
- A directive to take action or to make specific arrangements
- The restriction or suspension of certain specified business activities or
- A financial penalty not exceeding R10 million in respect of natural persons and R50 million in respect of any legal person.
While administrative sanctions are not of a criminal nature, some non-compliance issues could also be criminal offences and may be pursued by law enforcement and may result in criminal prosecution and imprisonment and or a fine.
The FIC may refer matters to the South Africa Police Service, National Prosecuting Authority or other enforcement agencies for criminal investigation and prosecution. However, criminal investigation and prosecution is not within the mandate of the FIC, which enforces compliance with the FIC Act through administrative sanctions and not criminal prosecution.
Accountable institutions are required to ensure they have complied with any directive issued by the FIC, including Directive 7, which required the online submission of a risk and compliance return to the FIC by Monday, 31 July 2023 (latest Directive required submission of risk and compliance returns to the FIC by Thursday, 31 July 2025).
Also, accountable institutions are required to provide a copy of their Risk and Compliance Management Programme (RMCP) to the FIC, upon request by the FIC, in a timely manner.
Get in touch with our team of senior professionals to help your organization navigate this very complex legislative framework.
Dr Pete Mhlanga
Advocate of the High Court
PhD Law (UNISA)
Harvard Executive and Professional Program
Risk Management | Regulatory Compliance | Corporate Governance (Wits University)
LLM (Public International Law) (UNISA)
LLB (Tax Lax | Company Law) (UNISA)
