Regulatory scrutiny around Financial Intelligence Centre Act (FICA) compliance continues to intensify – and the latest Financial Sector Conduct Authority (FSCA) action highlights the importance of strong anti-money laundering and counter-terrorism controls.
The FSCA fined Sanlam Collective Investments (SCI) R10.6 million for failing to comply with key provisions of FICA.
An inspection found gaps in SCI’s Risk Management and Compliance Programme (RMCP), especially in how client risk was assessed. The RMCP also lacked adequate processes for enhanced due diligence, reviewing complex transactions, ending business relationships and reporting suspicious activity.
The FSCA further identified weaknesses in identifying and verifying clients and beneficial owners, and in ongoing due diligence.
The SCI has taken steps to address these issues, and R3.6 million of the fine was suspended for two years, subject to full remediation.
“All accountable institutions are reminded to continually review and enhance their anti-money laundering and counter-terrorism financing controls … Failure to do so will result in firm regulatory action,” the FSCA stated.
How Masthead can assist:
We help accountable institutions develop tailored RMCPs and provide end-to-end FICA support – including training, monitoring, implementation assistance and preparation for FIC inspections.
For assistance, contact the regional office closest to you or click here to get in touch with us.