Are you registered as an Accountable Institution in terms of the FIC Act? Do you require assistance with the completion of your internal Risk Management and Compliance Programme?
On 2 May 2017, the Financial Intelligence Centre (FIC) issued a media release stating that it is pleased with the President signing the Amendment Act. The Amendment Act introduces new concepts aiming to implement another level of safeguarding South Africa’s financial system against money laundering, terrorist financing and other illicit activities. The amendments also assists with the FIC in producing high quality financial intelligence, as well as fight financial crime and protect the confidentiality of personal information.
How does the FIC Act define an accountable institution?
The term “accountable institution” is defined as a person or organisation referred to in Schedule 1 of the FIC Act that carries out business of any entity listed herein (including but not limited to Attorneys, Estate Agents, business of a bank, Gambling Institutions, Financial Services Providers, members of Stock Exchange, Foreign Exchange, Trust Companies etc).
Subsequently the Financial Intelligence Centre Amendment Act of 2017 forced Accountable Institutions to move to a risk-based (as opposed to rules-based approach) which modernises the way institutions conduct Customer Due Diligence in relation to financial transactions. In light thereof a fully implemented and developed Risk Management and Compliance Programme (RMCP) remains a regulatory requirement.
We will assist you to customise an RMCP to your business covering the following:
- Implementation, Review and Accessibility
- Regulatory Framework
- A Risk Based Approach
- Customer Due Diligence
- Record Keeping
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE).