The Financial Intelligence Centre (FIC) this month imposed administrative sanctions against a Krugerrand dealer and seven motor vehicle dealerships for non-compliance with the Financial Intelligence Centre Act.
The FIC said the imposition of an administrative sanction does not imply that an institution has facilitated money laundering or terrorism funding transactions.
The FIC fined Randburg Coin CC R7 520 831 for failing to report 212 transactions exceeding the cash threshold of R24 999.99. The centre may impose a maximum penalty of R10 million on a natural person and R50m on a legal person.
The sanctions imposed on the seven motor dealerships were:
- Gold Reef Motors (Pty) Ltd trading as Halfway Toyota Howick was fined R1 203 572 for failing to report and/or timeously report 60 transactions exceeding the threshold. It was also directed to deactivate its additional reporting profile and report the outstanding unreported transactions.
- Mahers Motors (Pty) Ltd trading as Paul Maher Ford was fined R934 755 for failing to report and/or timeously report 46 transactions exceeding the threshold. It was also reprimanded for failing to register timeously and directed to report the outstanding unreported transactions.
- Arnold Chatz Cars Constantia Kloof (Pty) Ltd trading as Arnold Chatz Cars Constantia Kloof was fined R896 459.76 for failing to report and/or timeously report 38 transactions exceeding the threshold. It was also reprimanded for failing to register timeously with the FIC.
- Rifle Range Car Sales (Pty) Ltd was fined R661 481 for failing to report and/or timeously report 76 transactions exceeding the threshold. It was also directed to report the outstanding unreported transactions.
- Blue Water Investments CC trading as Jackson Motor City was fined R503 443 for failing to report and/or timeously report 38 transactions exceeding the threshold. It was also reprimanded for failing to register timeously and for not complying with Directive 02/2014. The directive prohibits the person who registered on the FIC’s internet-based reporting portal from sharing his or her login credentials.
- Henque 1014 CC trading as Weirs Toyota was fined R412 095 for failing to report 52 transactions exceeding the threshold. It was reprimanded for failing to register timeously and directed to report the outstanding unreported transactions.
- KIA Motors South Africa (Pty) Ltd trading as KIA Roodepoort was fined R357 383 for failing to report and/or timeously report 27 transactions exceeding the threshold and R17 745 for failing timeously to report one suspicious and unusual transaction. It was also directed to report the outstanding unreported transactions and reprimanded for failing to register timeously.
All the sanctioned entities were cautioned not to repeat the non-compliant conduct.
In December last year, the FIC Appeal Board upheld the effective penalty of R1 065 924 imposed on Gauteng-based Truck World for failing to report transactions exceeding the cash threshold.
