Credit providers, estate agents, crypto asset providers and trust practitioners are among the accountable institutions that will have to submit risk and compliance returns to the Financial Intelligence Centre (FIC) within the coming months.
The FIC published two directives in the Government Gazette on 31 March requiring certain accountable institutions to complete a questionnaire about their understanding of money laundering (MF), terrorist financing (TF) and proliferation financing (PF) risks, as well as assess their compliance with the Financial Intelligence Centre Act (Fica.).
The information obtained from the risk and compliance return will assist the FIC in understanding the responding accountable institutions’ levels of risk awareness and compliance with Fica and in identifying the ML, TF and PF risks facing different sectors, the Centre said.
Directive 6 applies to the designated non-financial businesses and professions (DNFBPs) listed in items 1, 2, 3 and 9 of Schedule 1 to Fica. This means:
- Legal practitioners (item 1);
- Company and trust service providers (item 2);
- Estate agents (item 3); and
- Gaming providers (item 9).
The above DNFBPs were accountable institutions before the amendments to Schedule 1 that came into force on 19 December 2022. However, the definitions of these items were amended, and in some cases, they may apply to a wider scope of individuals and entities than they did previously.
The risk and compliance return for these accountable institutions covers the period 1 April 2022 to 31 March 2023 (both dates inclusive).
The return must be submitted to the FIC no later than 5pm on Wednesday, 31 May 2023.
Click here to access the return for Directive 6.
Directive 7 applies to some of the persons and entities that became accountable institutions in terms of the amendments to Schedule 1, specifically items 11, 14, 20, 21 and 22. This means:
- Credit providers (item 11);
- Postbank (item 14);
- High-value goods dealers (item 20);
- South African Mint Company (item 21); and
- Crypto asset service providers (item 22).
The risk and compliance return for these accountable institutions covers only six months, from 1 January to 1 June 2023 (both dates inclusive).
The return must be submitted to the FIC no later than 5pm on Monday, 31 July 2023.
Click here to access the return for Directive 7.
Non-submission of the returns may result in administrative sanctions.
People with questions about the directives can contact the FIC’s compliance contact centre on 012 641 6000 and select option 1, or they can submit a query online.
Documents to download
The amended Schedule 1 contains the precise definitions of the items listed in directives 6 and 7. Click here to download it.
These articles explain the persons and entities that have become accountable institutions:
- Will your business be an accountable institution from 19 December?
- New accountable institutions face hefty fines for failing to register with FIC
Click here to download the edition of the Government Gazette that includes directives 6 and 7.
Help is at hand
Accountable institutions can find it daunting to understand all their Fica obligations, let alone know how they must go about complying with them.
Moonstone Compliance offers compliance, consulting, and training options for accountable institutions of all types and sizes to help them implement anti-money laundering procedures and meet the requirements of Fica.
Moonstone Compliance will explain the complex regulations and offer practical recommendations tailored to your business.
We provide a wide range of services, from providing documentation to implementing a full compliance framework. You can select a combination of services and have them customised according to your needs.
Click here to read more about Moonstone Compliance’s suite of Fica services or send us an online enquiry.
