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FICA Compliance

GIA offers a wide range of services to all Accountable and Reporting Institutions including FICA training for your employees, hands-on assistance with the implementation of FICA requirements in your business and support services when preparing for a FIC Inspection.

FICA is an abbreviation for the Financial Intelligence Centre Act 38 of 2001 (as amended). The Act was instituted in order to fight financial crime such as money laundering, fraud, tax evasion, terrorist financing activities and identity theft. The Act was amended in 2017 to bring South Africa in line with international standards set by the Financial Action Task Force in combating money laundering and the financing of terrorism.

Purpose of the Financial Intelligence Centre Act, 2001

The Financial Intelligence Centre Act, 2001 (FICA) complements POCA. While POCA defines the money laundering offences, FICA compels the business community to take steps to control and prevent money laundering. FICA creates a number of compliance obligations for institutions such as banks, estate agents, brokers, attorneys, insurance companies and motor dealers. The Financial Intelligence Centre Act (FICA) does not stand alone in the legislative context; it is part of a broader sweep of legislation that currently includes:

  • The Prevention of Organised Crime Act 121 of 1998 (POCA)
  • The Financial Intelligence Centre Act 38 of 2001 (FICA)
  • The Protection of Constitutional Democracy Against Terrorist and Related Activities Act 33 of 2004 (POCDATARA)
  • The Prevention and Combating of Corrupt Activities Act 12 of 2004 (PRECCA).

These Acts interlock to form the legislative network to control money laundering in South Africa. Financial Intelligence Centre Act 2001 Part 4: Measures to promote compliance by accountable institutions 43. Training and monitoring of compliance

  1. An accountable institution must
    1. provide training to its employees, to enable them to comply with the provisions of this Act and the internal rules applicable to them;
    2. appoint a person with the responsibility to ensure compliance by
      1. the employees of the accountable institution with the provisions of this Act and the internal rules applicable to them; and
      2. the accountable institution with its obligations under this Act.

Enforcement – Administrative Sanctions
Duty
Training of employees regarding the FIC Act and internal rules

Duty Section 43(a)
Administrative Sanction (maximum)
 R50 million for legal person R10 million for natural person

Criminal Sanction (maximum)
R10 million or 5 years imprisonment

GIA can assist you with:

GIA can help you with your FICA Compliance

FICA requires all Accountable Institutions to apply a risk-based approach to identify, assess and understand its money laundering & terrorist financing risks in respect of the products and services it offers to clients, and to develop control measures to manage and mitigate the identified risks.

Where there are higher risks, to apply additional measures to manage and mitigate these risks.

All of this must be documented in the FICA Risk Management and Compliance Programme.

GIA can assist you with preparation for FIC inspections

FIC inspections are conducted by the FSCA on behalf of the FIC. A

The typical areas that will be covered and that Accountable and Reporting Institutions will need to demonstrate adherence to include: your FIC registration, your governance of anti-money laundering and terrorist financing, your training relating to anti-money laundering and terrorist financing, the thoroughness and effectiveness of your FICA RMCP, your customer due diligence process, your record keeping process, your cash threshold process and reporting processes, your process to deal with terrorist property and financial sanctions, suspicious transaction reports and more.

Our FICA webinar and online course will ensure your compliance with the FIC training requirements.

FICA requires Accountable Institutions to provide ongoing training on the RMCP and FICA to their current and new employees on a regular basis, and to ascertain the level of understanding after the training, and to provide evidence of the training.