Certain accountants were obligated to register with the FIC by 20 March 2023 as per the Financial Intelligence Centre Act (FIC Act).
The amended Schedule 1 of the FIC Act, which came into effect from 19 December 2022, included a new category called Trust and Company Service Providers (TCSP). TCSPs includes accountants and other service providers called Designated Non Financial Business and Professions (DNFBPs).
Not yet registered?
Accountants that have not yet registered with the FIC are called upon to do so, even after the deadline to avoid being in non-compliance with the registration requirements.
Already registered?
It is important to note that some entities may be required to register more than once with the FIC, should they perform activities in more than one item as listed in Schedule 1 of the FIC Act.
Regulatory requirements of the FIC
It is vital for the new accountable institutions to understand their obligations in terms of the FIC Act. This starts by being registered with the FIC. By doing so, you are playing your part in contributing to addressing a strategic deficiency identified by the Financial Action Task Force grey list process. Accountable institutions have to fulfill certain regulatory obligations, these include:
- implementing customer identification and verification,
- customer due diligence
- appointing a compliance officer,
- training employees on FIC Act compliance and risk exposure to money laundering,
- financing of terrorism,
- countering proliferation financing (ML/TF/PF),
- undertaking business risk assessments for ML/TF/PF, and
- implementing a risk management and compliance programme.
Accountable institutions must also file regulatory reports relating to:
- suspicious and unusual transactions,
- cash transactions exceeding the prescribed threshold,
- property linked to sanctioned persons,
- terrorist activity, or
- terrorist organisations.
Penalties for non-compliance
In terms of the FIC Act, non-compliance may result in administrative sanctions, which may include a fine of up to R10 million in respect of a natural person and R50m in respect of a legal person or prison sentence up to 15 years.
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CIBA Guide on Anti-Money Laundering for Accountants that are Accountable Institutions
CIBA commissioned and published the guide to provide guidance and serve as a practical tool to CIBA members on their obligations in terms of the FIC Act, related regulations and on their ethical obligations.
This guide is only available to CIBA designation holders who are in good standing. If you are not yet a member, have a sneak peek here and join our army of accountants here.
How to access the guide as CIBA member:
- Login to your CIBA Membership profile
- Select Practice Tools
- Select Guides from the Dropdown Category
