Overview

Amendments to the Financial Intelligence Centre Act (FICA) came into effect on 31 December 2022

It’s important to note that the enhanced compliance requirements occasioned by these amendments apply to a wider range of commercial activities. This is because amendments to Schedule 1 of the FICA mean more individuals and businesses have, by definition, become accountable institutions.

In addition to registering with the FIC, accountable institutions are required to fulfil certain regulatory obligations, such as:

• Implementing customer identification and verification processes;
• Conducting customer due diligence;
• Appointing a compliance officer;
• Training employees on FICA compliance;
• Undertaking business risk assessments; and
• Maintaining and implementing a risk management and compliance program.

This HUB includes all the necessary policies and procedures that Legal Practitioners may need in order to comply, as well as the necessary annexures to assist with the successful implementation of the Risk Management and Compliance Programme.

Preface and Disclaimer

Preface

Disclaimer

Introduction to Money laundering

What is money laundering?

What is terrorist financing?

What is Proliferation Financial or proliferation financing activity?

What is the purpose of the Financial Intelligence Centre Act (FICA)

What is the role of the Financial Intelligence Centre (FIC)?

The Acts and Regulations and Abbreviations

The Acts and Regulations

List of abbreviations

Definitions

Beneficial owner

Business relationship

Cash

Certified copy of a document

Domestic Politically Exposed Person (DPEP)

Foreign Politically Exposed person (FPEP)

Identity document

Knowledge

Money Laundering Reporting Officer (MLRO)

Proceeds of unlawful activities

Property

Property associated with terrorist and related activities

Prescribed amount of a single transaction

Prospective client

Prominent Influential Person (PIP)

Single transaction

Unlawful activity

Offences

Money laundering offence

Offences subject to administrative penalties

Offences subject to maximum of 15 years imprisonment or a fine not exceeding R 100 million

Administrative sanctions

Why is our firm an accountable institution?

Item 2 of Schedule 1 of the FIC Act

Why are trusts being used for money laundering purposes?

What can our firm as a trust service provider do to combat money laundering?

Scope and purpose of the \risk Management and Compliance Hub (RMCH)

Purpose and objective of the Risk management and Compliance Hub (RMCH)

Risk Management Compliance Governance

Responsibility of management and those charged with Governance

Approval and adoption of the Risk Management and Compliance Programme (RMCP)

Implementation of the Risk Management and Compliance Programme (RMCP)

Annual review of the Risk Management and Compliance Programme (RMCP)

Appointment and responsibility of the Compliance/ Reporting Officer

Appointment of the Compliance/ Reporting Officer

Responsibilities of the Compliance Officer

Registering with the Financial Intelligence Centre (FIC)

Method of registration

How to add goAML URL as a trusted site

How to enable pop-ups

Use of email addresses

Registration of the Compliance Officer

Registration of the firm

Step by step instructions on how to register

Centralisation of registration - delegation

Updating of details

Methods of receiving and responding to communications from the Centre

Failing to register with the FIC

Implementing a Risk Based Approach (RBA)

Obligation to implement an effective Risk Management Compliance Program (RMCP)

Risk-rating methodology

Responding to identified risks

Risk of ML/TF/PF related to our products and services

Control measures

Customer due diligence and risk assessment

Record keeping

Training relating to anti-money laundering and counter terrorist financing compliance

Screening of employees

Advising the Centre of clients

Obligation to advise the Centre of clients of the firm

Targeted financial sanctions aimed at terrorist financing

Scrutinising person`s and entities against the UN 1267 sanctions list

Scrutinising persons and entities against the Targeted Financial Sanctions List ((TFS)

Prohibitions relating to persons and entities identified by Security Council of the United Nations

Applications for Permitted Financial Services

Reporting cash transactions above R49 999.99

Obligation to report cash transactions above R49 999.99

Payment or receipt of cash via a third party

Prescribed particulars to be reported to the Centre

Reporting suspicious and unusual transactions

Obligation to report suspicious and unusual transactions

Meaning of suspicion

Types of reports

Indicators of suspicious and unusual transactions

Indicators of suspicious and unusual acitivity

Manner of reporting

Reporting suspicious and unusual transactions

Time period for submitting a report

Threshold for reporting suspicious and unusual transactions

Prescribed particulars to be reported to the Centre

Continuing with a transaction after a report is made to the FIC

Request by the Financial Intelligence Centre to discontinue the transaction

Dealing with further requests for information from the FIC

Reporting by temporary workers

Tipping-off

Confidentiality rules with regards to reporting to the Centre

Protection for person`s reporting to the Centre

Defence

Penalty for failure to report suspicious or unusual transactions

Reporting of property associated with terrorist and related activities

Introduction

Obligation to report property associated with terrorist and related activities

Freezing of the property and ceasing to conduct business

Manner of reporting to the FIC

Intervention by Centre

Monitoring orders

Failure to file a report in terms of Section 28A

Reporting failures and submitting defective reports

Reporting failure

Defective reports

Report content failure

Reporting fraud or theft under the Prevention and Combatting of Corrupt Activities Act (PRECCA)

Obligation to report

Making a report

Additional obligations for trustees of trusts in terms of the Trust Property Control Act

Registration n the Master`s Web Portal

Duty of a trustee of a trust

Master`s authorisation to act

Disclosure to accountable institutions

Recording of details of accountable institutions

Disclosure of beneficial ownership

Beneficial ownership in relation to a trust

Create, maintain and file the beneficial ownership register with the Master of the High court

Obtain an Engagement Letter and Power of Attorney from the client

Trust registration beneficial owners details are captured on the SARS system

Failure by trustee to account or perform duties

Beneficial ownership disclosures for trust and companies Training Video

Submission of Beneficial Ownership registers to CIPC

Requirement to submit an Annual Return

Definition of a beneficial owner in terms of the Companies Act

Holder of a beneficial interest in a company

Definition of an "Affected  Company"

Information to be included in a security register

Filing requirements for companies that are not "Affected Companies"

Filing requirements of companies that are Affected Companies

Date when the information must be filed with the CIPC

Supporting documents that must be filed with the CIPC

Obtain an Engagement Letter and Power of Attorney from the client

Step by step instructions on how to capture beneficial ownership details on the CIPC Portal

Submission of a risk and compliance return to the Financial Intelligence Centre 

Obligation to submit a Risk and Compliance return to the Financial Intelligence Centre

Procedures to be performed by the auditor during the audit of financial statements

Auditors`s responsibility toward compliance with laws and regulations by the client during an audit

Acceptance or retention of audit clients

Identifying and assessing the risks of material misstatement

Consideration of fraud during the audit

Compliance with laws and regulations

Procedures where possible money laundering is discovered

Going Corcern Considerations

Finalising the engagement

The registered auditor`s report on financial statements

The duty to report a Reportable Irregularity in terms of the Auditing Profession Act

Background

Section 45(1) prescribes as follows:

Policy

Procedures

Procedures to be performed by the independent reviewer during the independent review of financial statements

Independent reviewers responsibility towards compliance with laws and regulations by the client during an independent review

Acceptance or retention of Independent Review clients

FICA Training

FICA training for Employees

FICA training for Partners and Compliance Officers

Implementation video

Practical Implementation of the RMCP

Post assessment for the Practical Implementation workshop

Summary of the RMCP

Summary of the RMCP

Annexure List

Annexure List

From the Regulators

Update of the BO registers on the CIPC website

Directives