A reminder that certain accountable institutions have until the end of this month to submit a return to the Financial Intelligence Centre (FIC).
As Moonstone reported in April, Directive 7 of 2023 requires five types of accountable institution to submit a risk and compliance return to the FIC by 5pm on Monday, 31 July.
Read: Certain accountable institutions must complete risk and compliance returns
Directive 7 applies to some of the persons and entities that became accountable institutions in terms of the amendments to Schedule 1 to the Financial Intelligence Centre Act (Fica), specifically items 11, 14, 20, 21, and 22.
The specified accountable institutions are:
Credit providers (item 11). This is defined as a person who carries on the business of a credit provider as defined in the National Credit Act (NCA), and a person who carries on the business of providing credit in terms of any credit agreement that is excluded from the application of the NCA by virtue of section 4(1)(a) or (b) of that Act.
South African Postbank Limited (item 14).
High-value goods dealers (item 20). This is defined as a person who carries on the business of dealing in high-value goods in respect of any transaction where such a business receives payment in any form to the value of R100 000 or more, whether the payment is made in a single operation or in more than one operation that appears to be linked, where “high-value goods” means any item that is valued in that business at R100 000 or more.
South African Mint Company (RF) (Pty) Ltd (item 21), but only to the extent that it distributes non-circulation coins in retail trade and where in respect of such transactions it receives payment in any form to the value of R100 000 or more, whether the payment is made in a single operation or in more than one operation that appears to be linked.
Crypto asset service providers (item 22). This means a person who carries on the business of one or more of the following activities or operations for or on behalf of a client:
- exchanging a crypto asset for a fiat currency or vice versa;
- exchanging one form of crypto asset for another;
- conducting a transaction that transfers a crypto asset from one crypto asset address or account to another;
- safekeeping or administration of a crypto asset or an instrument enabling control over a crypto asset; and
- participation in and provision of financial services related to an issuer’s offer or sale of a crypto asset.
“Crypto asset” means a digital representation of perceived value that can be traded or transferred electronically within a community of users of the internet who consider it as a medium of exchange, unit of account or store of value and use it for payment or investment purposes but does not include a digital representation of a fiat currency or a security as defined in the Financial Markets Act.
The risk and compliance return for the abovementioned accountable institutions covers the period 1 January to 30 June 2023 (both dates inclusive).
The return requires the applicable accountable institutions to submit information to the FIC on their understanding of money laundering (ML), terrorist financing (TF) and proliferation financing (PF) risks, as well as an assessment of their compliance with their Fica obligations.
The FIC is seeking to identify the ML/TF/PF risks facing different accountable institutions.
The completion of the return is an automated process, and accountable institutions must populate the information directly using the link on the FIC’s website.
Non-submission of the return will be considered non-compliance with the directive and may result in an administrative sanction.
Click here if you want to read the questions on the risk and compliance return before completing it online.
