The Financial Intelligence Centre (FIC) issued Public Compliance Communication 6A (PCC6A) on 21 August 2023, clarifying what services will trigger the requirement to register as an accountable institution.
Schedule 1 of the Financial Intelligence Centre Act, 2001 (Act 38 of 2001) was amended to increase the number of sectors registering as accountable institutions with the FIC. The changes came into effect on 19 December 2022.
The amended definition of Item 2, which pertains to Trust and Company Service Providers, now includes accountants who assist clients in the creation, operation, or management of a company or a close corporation, or act as a nominee for a client as defined in the Companies Act.
According to Paragraph 2.6 of PCC6A, an accounting business that offers the following services DOES NOT HAVE TO REGISTER with the FIC:
- Bookkeeping and compilation of financial statements
- Filing tax returns
- Services that do not involve making management decisions for the client or significantly influencing the client’s business services.
However, it is important to note that all accounting practices offering company and/or trust registration services must be registered with the FIC. If your practice is not registered, please do so as soon as possible to avoid administrative penalties.
You can find guidance on Anti-Money Laundering for Accountants, who are considered Accountable Institutions, in the CIBA Guide available on your CIBA member profile.
The FIC is hosting a webinar on 30 August 2023 on PCC6A at 10:00-12:00. Register and join the webinar here.
To read PCC6A on the FIC website, follow the link here.
For more information on the Financial Intelligence Centre and how to register visit the CIBA Practice Support Library here.
If you need technical assistance, please send your queries to technical@ciba.org or taxtech@ciba.org.
