The Financial Intelligence Centre (FIC) clarified its role in a media release published on 4 September 2019. The publication followed several queries from the media on whether the FIC had acted lawfully in providing certain information to the Office of the Public Protector. The FIC stated that whilst it does not usually address issues through the media, it has a duty to correct inaccurate reporting and misinterpretation of its mandate in the public domain as these inaccuracies, if left uncorrected, can potentially harm the reputation of the FIC and create the impression that it acts pursuant to forces other than the law. The FIC further emphatically stated that the information provided to the Office of the Public Protector was both obtained and disseminated lawfully in terms of the Financial Intelligence Centre Act (FIC Act).
The FIC clarified that its role and mandate is to assist in the identification of the proceeds of crime, in combating money laundering and the financing of terrorism. It does this by receiving regulatory reports from accountable institutions, which includes banks, on suspicious and unusual transactions, on cash transactions above the threshold of R24 999.99 and on terrorist property. The FIC explained that when it receives these reports it analyses, assesses and interprets the information therein to develop financial intelligence reports.
The FIC further stated that it responds to requests for information from legislated authorities and disseminates financial intelligence reports to them where necessary. In terms of section 40 of the FIC Act, legislated authorities include: the National Prosecuting Authority, the Office of the Public Protector, the State Security Agency, the Intelligence Division of the National Defence Force, the South African Revenue Service, the Special Investigating Unit and the Independent Police Investigative Directorate and investigating authorities in the Republic.
The FIC confirmed that its mandate does not extend to investigation and prosecution therefore the FIC works closely with legislated authorities in the broader criminal justice system and related areas. The financial intelligence provided to these authorities consists of a combination of factual information and the FIC’s analysis of those facts. The FIC does not control how the legislated authorities handle the information received from the FIC during the course of their investigations as the FIC Act permits legislated authorities to use the information they have obtained from the FIC within the scope of their powers and duties, as well as the purpose for which it was requested.
The media release also states that in terms of section 40(1) of the FIC Act, the FIC must make available the financial intelligence reports generated by its analysis, to officers who are authorised to receive this information. This duty to make information obtained by the FIC available to specific requesting institutions (of which the Office of the Public Protector is one) is also imposed by section 3(2)(a)(viii) of the FIC Act. Section 4(b) of the FIC Act enjoins the FIC to inform, advise and co-operate with these legislated institutions.
The FIC confirmed that it is monitoring the pending litigation between the President and the Office of the Public Protector closely, and should there be a need, it shall seek permission to intervene solely for the purposes of clarifying its mandate and to assist the Court to ensure that there is no misleading of the Court.