FICA

Masthead offers a wide range of services to all Accountable and Reporting Institutions including FICA training for your employees, hands-on assistance with the implementation of FICA requirements in your business and support services when preparing for a FIC Inspection.

What is FICA?

FICA is an abbreviation for the Financial Intelligence Centre Act 38 of 2001 (as amended). The Act was instituted in order to fight financial crime such as money laundering, fraud, tax evasion, terrorist financing activities and identity theft. The Act was amended in 2017 to bring South Africa in line with international standards set by the Financial Action Task Force in combating money laundering and the financing of terrorism.

The purpose of FICA and why it is necessary

FICA is a legal framework which exists to help identify the proceeds of unlawful activities and to combat activities related to money laundering, terrorist funding and tax evasion. Various control measures within FICA aim to ensure the detection and investigation of money laundering.

Some of the key control measures in FICA require that:

• Accountable Institutions must adopt a Risk Based Approach which requires these institutions to have a proper understanding of how their products and services can be used for purposes of money laundering and for the financing of terrorism and how they will mitigate that risk.
• Customer Due Diligence which places responsibility on Accountable Institutions to know who they are doing business with must be conducted.
• Record-keeping as prescribed must be adhered to..
• Accountable Institutions must do sanctions screening and in certain circumstances will be required to report to the FIC.
• A Risk Management and Compliance Programme (“RMCP”) that comprises of policy documents, procedures, systems and controls must be developed, documented, maintained, and implemented by Accountable Institutions.
• The responsibility for FICA compliance lies with Directors in the case of a legal entity or senior management.

Who does FICA apply to?

The Act applies to all Accountable and Reporting Institutions as defined in schedule 1 of the Act must comply with the requirements set out in the Act. Amongst those listed are financial services providers, attorneys, trustees and executors, estate agents, motor dealers, investment management companies, bankers and more.

Masthead can assist you with:

• FICA Compliance
• FIC Inspections
• FICA Training