Shareholder ties don’t lessen FICA compliance obligations
The Appeal Board dismisses an FSP’s argument that its close ties with its sole shareholder reduced the need for comprehensive due diligence.
The Appeal Board dismisses an FSP’s argument that its close ties with its sole shareholder reduced the need for comprehensive due diligence.
The firm of attorneys said its non-compliance was not intentional and was the result of a lack of awareness.
The fines on both banks run into millions of rands, but most of the penalties are conditionally suspended.
The owner of MIKA Finansiele Dienste emphasises that waiting for an audit before getting your house in order can have costly consequences.
The FIC’s latest annual report shows that out of 558 inspections conducted during the year, 269 specifically targeted the non-submission of risk and compliance returns.
The Prudential Authority discovered the non-compliance during a routine inspection conducted four years ago.
The non-compliance was discovered during inspections by the Prudential Authority in 2020 and 2022.
Draft Guidance Note 7A provides further guidance to accountable institutions about their Risk Management and Compliance Programme obligations.
The FSCA’s inspection identified defects with the implementation of the RMCP and a failure to conduct a thorough client due diligence.
The reasons for the sanction are virtually identical to those that saw the Authority fine an FSP earlier in February.
Implementing – not merely creating – a Risk Management and Compliance Programme is crucial to ensure compliance with the Act.