FICA: Risk Management and Compliance Toolkit Property Practitioners
Overview
Amendments to the Financial Intelligence Centre Act (FICA) came into effect on 31 December 2022
It’s important to note that the enhanced compliance requirements occasioned by these amendments apply to a wider range of commercial activities. This is because amendments to Schedule 1 of the FICA mean more individuals and businesses have, by definition, become accountable institutions.
In addition to registering with the FIC, accountable institutions are required to fulfil certain regulatory obligations, such as:
- Implementing customer identification and verification processes;
- Conducting customer due diligence;
- Appointing a compliance officer;
- Training employees on FICA compliance;
- Undertaking business risk assessments; and
- Maintaining and implementing a risk management and compliance program.
This HUB includes all the necessary policies and procedures that Property Practitioners may need in order to comply, as well as the necessary annexures to assist with the successful implementation of the Risk Management and Compliance Programme.
Preface and Disclaimer
Preface
Disclaimer
Introduction to Money Laundering
What is money laundering?
What is terrorist financing?
What is Proliferation Financing or proliferation activity?
What is the purpose of the Financial Intelligence Centre (FIC)?
The Acts and Regulations and Abbreviations
The Acts and regulations
List of abbreviation
Definitions
Why is our agency an accountable institution?
Scope and purpose of the Risk Management and Compliance Hub (RMCH)
Risk Management Compliance Governance
Appointment and responsibility of the Compliance/Reporting Officer
Registering with the Financial Intelligence Centre (FIC)
Control measures
Customer due diligence and risk assessment
Meaning of Customer Due Diligence (CDD)
Activities considered to be a business relationship or single transaction
Identification and verification of existing and prospective clients
Verification and corroboration of the clients identity
Understanding and obtaining information about the business relationship
Anonymous clients and clients acting under false or fictitious names
Money Laundering threats and vulnerabilities posed by international geographic areas
Establish if a person is a Domestic Politically Exposed Person (DPEP)
Establish if a person is a Foreign Politically Exposed Person (FPEP)
Obtaining additional information from a client which poses a high risk of money laundering
Establishing and verifying the identities of natural persons/sole proprietor
Assessing the risk of a natural person/sole proprietor
Establishing and verifying the identities of a corporate entity
Assessing the risk of a corporate entity
Establishing and verifying the identities of a partnership
Assessing the risk of a partnership
Establishing and verifying the identity of a trust
Ongoing due diligence/account monitoring
Doubts about veracity of previously obtained information
Inability to conduct customer due diligence
Maintaining the correctness of the client’s information
Receipt and acceptance of funds prior to completion of the customer due diligence measures
Record keeping
Obligation to keep Customer Due Diligence records
Type and format of record keeping
Keeping records of transactions
Duration and manner for which records must be kept
Training relating to anti-money laundering and counter terrorist financing compliance
Obligation to provide training to all employees.
Training session for employees: Course outline
Training session for directors/owners and compliance/reporting officers
Screening of employees
Advising the Centre of clients
Targeted financial sanctions aimed at terrorist financing
Reporting cash transactions above R 49 999.99
Reporting suspicious and unusual transactions
Obligation to report suspicious and unusual transactions
Indicators of suspicious and unusual transactions
Indicators of suspicious and unusual activity
Reporting suspicious and unusual transactions
Time period for submitting a report
Threshold for reporting suspicious and unusual transactions
Prescribed particulars to be reported to the Centre
Continuing with a transaction after a report is made to the FIC
Request by the Financial Intelligence Centre to discontinue the transaction
Dealing with further requests for information from the FIC
Reporting by temporary workers
Confidentiality rules with regards to reporting to the Centre
Protection for person's reporting to the Centre
Penalty for failure to report suspicious or unusual transactions
Reporting of property associated with terrorist and related activities
Reporting failures and submitting defective reports
Reporting fraud or theft under the Prevention and Combatting of Corrupt Activities Act (PRECCA)
Submission of a risk and compliance return to the Financial Intelligence Centre
FICA training
Summary of the RMCP
Annexure List
Annexure List
From the Regulator
