We at FC Solutions strive to provide your business with the best possible compliance solutions in terms of the NCA, POPIA, FICA as well as assistance with GoAML Registration
CBanks, Co-Operative Banks, Mutual Bank, Legal Practitioners, Company and Trust Service Providers, Estate Agents, Authorised Users of Exchanges, Manager registered in terms of Collection Investment Schemes Act, Long-Term Insurance Business, Person carrying on the Business of making available a Gambling Activity, Person dealing in Foreign Exchange, Credit Providers, Financial Services Providers, SA Postbank, High-Value Goods Dealers, Money or Value Transfer Providers, SA Mint Company and Crypto Asset Service Providers and are all examples of Accountable Institutions.
FICA or the FIC Act is the abbreviation for the Financial Intelligence Centre Act 38 of 2001, which Act was instituted to fight financial crimes such as:
a) Identity Theft
b) Fraud
c) Money Laundering
d) Tax Evasion
e) Terrorist Financing Activities
Purpose of the FICA / the FIC Act?
The FIC Act’s purpose is to combat and criminalise money laundering, terrorist financing, identification of the proceeds of any unlawful activities and making the country safe for all citizens.
The legislation came into effect around 2000/2001 but has seen important changes recently i.e. 19 December 2022. The National Treasury amended Schedules 1, 2 and 3 of the FIC Act. This included an additional list of Accountable Institutions that were identified,
which was extended to also include all credit providers, whether registered with the NCR or exempted in terms of the NCA.
PLEASE NOTE: All microlenders fall within the definition of credit providers and must comply with the FIC Act as an accountable institution.
1) Registration with the FIC – Register as an Accountable Institution on the GoAML Website and ensure your business’ profile is kept updated.
2) Compliance Officer – Appoint a person of seniority to act as Compliance Officer.
3) 3RMCP – develop, implement and maintain a Risk Management Compliance Programme (“RMCP”), which is a tool designed for how your business identifies, manages and reacts to possible instances of money laundering and terrorist financing (“ML/TF”).
4) Training – Ensure regular and ongoing training is done for all employees on the content of the RMCP and requirements of the FIC Act.
5) Customer Due Diligence (“CDD”) – KNOW YOUR CLIENT – following a risk-based approach in conducting CDD by conducting the necessary
6) Client Identification Verification
7) Terrorist Sanctions screenings
8) Screenings for Politically Exposed Person - domestic & foreign – (“DPEP / FPEP”) or a Politically Influential Person (“PIP”)
9) Reporting – on inter alia cash transactions above R49,999 and suspicious transactions.
10) Record Keeping – keeping accurate records of all CDD screenings, documents and transactions for a period of 5 years.
a. Client Identity Verification
b. Identifying any PIP's or DPIP's
c. KYC assessments
7. Maintain accurate records of all CDD screening and transactions for the minimum prescribed periods.
Should an Accountable Institution fail to comply with its obligations in terms of the FIC Act, the FIC can impose either an administrative sanction and/or a criminal sanction
Administrative Sanction: Natural Person = R5 000 000 (Million) / Legal Person = R10 000 000 Criminal Sanction: 15 years imprisonment / R100 000 000 (Million) for the following offences:
Administrative Sanction: Natural Person = R5 000 000 (Million) / Legal Person = R10 000 000 for the following offences:
We would not have been compliant without the help of FC Solutions! Thanks Guys!
The FICA Act Amended: 19 December 2022
The amended Schedules to the Financial Intelligence Centre Act (Fica) has come into effect on 19 December 2022, and it significantly increases the number of sectors included as accountable institutions.
Something Else Important in the Industry
All Accountable Institutions referred to in Schedule 1 – ITEM 11 / 14 / 20 / 21 / 22
SUBMISSION OF FIC RISK COMPLIANCE RETURN
Due by 31 July 2023
Something Else Important in the Industry
All Accountable Institutions must screen its employees for the following:
1)Competence and integrity
2)Targeted Financial Sanctions Lists as a ML/TF/PF control measures
PAYMENT OF NCR ANNUAL RENEWAL FEES
It is that time of year again where your NCR Annual Renewal fees must be paid by 31 July 2023. The NCA however provides a 30 day grace period (with penalty) to pay your Annual Renewal Fees.
PLEASE NOTE: If you fail to pay by 31 August 2023, your registration will automatically lapse by operation of law and you will no longer be registered as a credit provider. This means all credit agreements entered into without being registered as a credit provider is unlawful.
We want to appeal to all credit providers to make payment of their Annual Renewal Fees even if they haven’t received an invoice from the NCR. Please contact us should you require any assistance herewith.
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