Accountable Institutions have the responsibility to:

• Identify and verify new and existing clients
• Keep records of identities if clients and transactions entered into with clients
• The following records shall be obtained and retained in instances of concluding a single transaction, concluding transactions as part of a business relationship or establishment of a business relationship:

• If the client acts on behalf of a third party, the identify of the third party as well as a copy of the mandate between the client and the third party
• If the client acts on behalf of a client, the identity of the third party as well as a copy of the mandate between the client and the third party.

• The method of identification and verification of particulars 
• The exact nature of the transaction or business relationship
• The parties to a transaction as well as the monetary value thereof
• The particulars of the employee or representative that obtained the information
• The information, documentation or forms furnished by the client to verify the information

In addition, to keeping records:

• No person shall destroy any record, except if the destruction of such record was authorized by the responsible person.
• No person shall amend any record kept in terms of the Act.
• Institutions must report certain large or suspicious transactions to the Financial Intelligence Centre established by the FIC Act.
• Institutions must formulate and implement internal rules consistent with FICA obligations
• Institutions must offer compulsory FIC Act training to employees.
• Institutions must appoint a responsible person as a compliance officer to monitor compliance.

Who must register with FIC?

• Persons who start new businesses which are regarded as accountable institutions are required to register with the FIC within 90 days from the date the business commenced. How do you register with the FIC?

Who does the Financial Intelligence Centre Act apply to? 

• FICA applies to all accountable institutions, including, amongst others: Financial Services Providers (FSPs), Legal Practitioners, Motor Vehicles Dealers.

Non-compliance with the FICA regulatory framework could be very costly for businesses, including law firms. Let our senior experts, former regulatory compliance officers, attorneys, accountants, auditors, tax experts, financial management experts, help your organization to navigate this very complex regulatory landscape.

Dr Pete Mhlanga

Managing Director, MCTG Consulting

PhD Law

Advocate of the High Court of South Africa

Harvard Professional & Executive Development

LLM (Public International Law)

LLB (Company Law | Tax Law | Contracts Law)