Amendments to the Financial Intelligence Centre Act (FICA) have been signed into law, although the effective date on which they become operative has not yet been proclaimed.
Some of the key amendments include:
- The confirmation of a risk-based approach to customer due diligence which requires the identification and assessment of an institution’s money laundering and terrorism risks.
- Additional due diligence requirements for legal persons, trusts and partnerships.
- Ongoing due diligence and scrutiny of transactions during the course of a business relationship and not just at the inception of the relationship.
- Additional obligations in relation to clients who hold prominent public or private sector positions, and
- Increased intervention power by the FIC and provision for warrantless searches in specified instances.
Some of the amendments may require changes to internal business processes and operations.
What are the compliance obligations for accountable institutions?
- Registering with the FIC.
- Submitting regulatory reports to the FIC.
- Implementing a risk-based approach.
- Developing a risk management and compliance programme.
- Conducting customer due diligence.
- Establishing beneficial ownership.
- Scrutinizing clients against targeted financial sanctions list.
- Determining whether clients are politically exposed persons.
- Keeping records of customer transactions.
- Appointing a compliance officer.
- Training employees on how to comply with the FIC Act.
For more information and if you are unsure whether you have adequate FIC compliance strategies, please contact:
Dr Pete Mhlanga
Financial Crimes Subject Matter Expert | Risk Advisory
FICA | Anti-Money Laundering
Advocate of the High Court of South Africa
PhD Law (UNISA)
Risk | Compliance | Governance Law (Wits)
Harvard Professional and Executive Development
LLM (UNISA)
LLB (Tax Law | Company Law) (UNISA
Morningside Consulting and Training Group (Pty) Ltd
petemhlanga@mctg-consulting.co.za | info@mctg-consulting.co.za
Tel.: 083 576 5175/ 011 367 0636
66 Park Lane,
Sandton 2196
