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FICA compliance for high-value goods dealers

High-value goods are often used to launder the proceeds of criminal activities. If you or your business deals with high-value goods, you need to know how to safeguard your business.

High-value goods dealers are businesses that deal with transactions where a business receives payment in any form of R100 000 or more. The transactions may be executed in a single operation or in several operations that appear to be linked. Examples of high-value goods dealers include Motor Vehicle Dealers, Kruger rand dealers, and dealers in precious metals and stones. Goods that often qualify as high-value and of potentially heightened money laundering risk are fine art, antiques and collectibles. Other goods include boats and yachts, luxury vehicles, jewellery, gold, silver and other precious metals, diamonds and other precious stones.

Why are high-value goods businesses vulnerable?

High-value goods businesses are vulnerable to abuse for purposes of money laundering and terrorist financing for various reasons. Firstly, high-value goods can be readily purchased and sold. They also store value and can be more readily transported. This makes it easier for criminals to transfer value between persons and countries with a reduced risk of detection.

Businesses in the high-value goods dealers category are considered accountable institutions under the FIC Schedule amendments which came into effect during December 2022, and therefore need to comply with stringent obligations. These include registration, customer due diligence, recordkeeping, reporting and documenting their compliance measures in a risk management and compliance programme (RMCP). In addition, further reporting requirements may apply to cash payments.

Let us assist your high-value goods business with understanding and complying with FICA.

Help and guidance for high-value goods dealers to comply with FICA

Implementing these legislative obligations can be challenging, but Masthead can guide you through the process to become and remain compliant. From helping you to understand your obligations under FICA to providing practical support tailored to your business, we provide a holistic compliance solution.

As part of the solution, we can help you assess your own money laundering and terrorist financing risk. We then help you develop, document, implement and maintain a RMCP for anti-money laundering and counter-terrorist financing.

This will include guidelines on how to conduct a customer due diligence and classify customers in terms of risk. You’ll know what information to record, where to record it and the correct procedures to report suspicious activities and transactions.

FICA and AML Online Course for High-Value Goods Dealers

To ensure you and your staff are fully aware of FICA, the implications for your business and each person’s regulatory obligations, we offer an online training course. Your staff can learn at their own pace and opt for refresher sessions, while interactive quizzes assess their understanding. In this way, you can easily keep track of their progress and document their learnings. The course is updated as FICA is amended, so you can remain compliant.

Webinars to guide you through your FICA requirements

We host webinars to help guide you through all the elements that need to be included in your FICA RMCP and get a good understanding or the requirements.

Preparation for FIC inspections

High-value goods dealers are also subject to FIC inspections, conducted by the FIC. These can be stressful and lengthy events. We can assist you to prepare for an inspection and be on site to provide support during an inspection. Our FIC Inspection Webinar can help you assess whether you are ready for a FIC inspection.

Why use our services?

Masthead has a track record of almost two decades in assisting hundreds of businesses with compliance. Our compliance officers are highly skilled and experienced. They also have an excellent knowledge of FICA. With our national footprint, we easily assist businesses across South Africa and further afield.

How to proceed

If you would like to know more about how we can assist you to become FICA compliant, please contact us. We will be happy to help you on your compliance journey.

MASTHEAD IS

A national supplier of risk management services to independent financial advisors and other licensed financial service providers (FSPs). Established in 2004, we help our clients overcome their risk management challenges so they can grow and thrive in an increasingly regulated industry. Providing professional guidance and practical support, our team of specialists is passionately committed to delivering tangible solutions.

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