Many people in the agricultural sector – including auctioneers and traders in farming implements – are unaware that they are now accountable institutions in terms of the Financial Intelligence Centre Act (FICA), not to mention the statutory compliance obligations this entails.
In December 2022, a new category was added to the list of accountable institutions in Schedule 1 of FICA as part of the measures to address gaps in South Africa’s anti-money laundering and combating terrorism financing legislation.
This new category is known as a “high-value goods dealer” (HVGD) – essentially, a person who carries on a business where transactions involve payments of R100 000 or more.
The agricultural sector, with its frequent high-value transactions – such as auctioneers of livestock and game and traders of agricultural implements – is particularly impacted by the introduction of the HVGD category.
As accountable institutions, HVGDs must comply with FICA, which includes having a Risk Management and Compliance Programme, appointing a FICA compliance officer, submitting a Risk and Compliance Return, and filing regulatory reports with the Financial Intelligence Centre (FIC). Failing to do so could result in substantial penalties and other administrative sanctions – as well as reputational damage.
Another FICA compliance requirement is that accountable institutions must periodically screen their employees for competence and integrity, to identify, assess, monitor, mitigate, and manage the risk of money laundering, terrorist financing, and proliferation financing.
They must also scrutinise employee information against the Targeted Financial Sanctions lists, to determine whether a prospective or current employee is on the list.
Moonstone Compliance will host a free webinar on Wednesday, 13 November, that will enable role-players in the agricultural sector to assess the potential impact of FICA on their businesses and their workforce.
Although the webinar is tailored for the agricultural sector, it will benefit anyone whose commercial activities make them a HVGD. And because employee screening applies to all accountable institutions, the information in this part of the webinar will be help anyone who must comply with FICA.
Francois Meintjes, one of Moonstone’s most experienced compliance officers, will unpack the important FICA concepts, so you can assess whether the compliance measures apply to you. Francois will discuss the FIC’s Public Compliance Communication 58, which provides guidance on the interpretation and application of the definition of a HVGD.
Andrea de Jongh, Moonstone Compliance’s employment law expert, will delve into accountable institutions’ compliance obligations regarding their employees. Andrea will focus on the FIC’s Directive 8 and PCC 55, which set out the Centre’s expectations when it comes to employee screening.
At the end of the webinar, Francois and Andrea will explain the solutions Moonstone Compliance has developed to enable role-players in the agricultural sector meet their FICA compliance obligations.
The free Teams webinar takes place from 10am to 11.30am on 13 November.
Registration closes on 12 November. Click here to register.
There are no CPD hours for attending the webinar.
