Directive 5 of 2019 was published by the Financial Intelligence Centre (FIC) during March 2019. The Directive relates to the usage of an Automated Transaction Monitoring System (ATMS) for the detection and submission of regulatory reports to the Centre in terms of section 29 (Suspicious and Unusual Transactions) of the FIC Act. Directive 5 places certain obligations on accountable and reporting institutions and other persons (collectively referred to as reporters) who use an ATMS to enable them to monitor client transactions and activity in order to identify suspicious and unusual transactions.
On 31 January 2020, the FIC published draft Public Compliance Communication (PCC) 107 which provides guidance to all reporters on the requirements set out in Directive 5 of 2019. Draft PCC 107 is currently open for public comment until 21 February 2020. Comments can be e-mailed to the FIC at Consult@fic.gov.za.
It is important to note that it is not mandatory for a reporter to use an ATMS. However, should the reporter opt to make use of an ATMS, they must do so in line with Directive 5.
Read our previous article, FIC Directive 5/2019, to learn more about the use of an ATMS ito Directive 5 of 2019.