Joint communication 2A of 2020 recently published by the FSCA updates the timeframes previously communicated regarding the submission of detailed Plans for compliance with ongoing customer due diligence (CDD) in terms of the FIC Act.
Previous requirement:
The previous communication, Joint Communication 2 of 2020, required accountable institutions to submit detailed Plans regarding ongoing CDD to their supervisory body (FSCA) by no later than 15 May 2020. This plan related to existing clients of the accountable institution that required face-to-face ongoing CDD between 1 March 2020 and 4 May 2020, but as a result of the lockdown the accountable institution was not able to conduct same. The accountable institution’s submitted plan was required to contain completion dates that do not extend further than 4 December 2020.
The dates to comply with this requirement have now been extended as follows:
Updated requirement:
Joint Communication 2A of 2020 published on 8 May 2020, updated the timeframes and clarifies that in respect of existing clients whom on-going due diligence was required to take place from 1 March 2020 until and including the entire Level 4 lockdown period in a face-to-face manner, the Authorities do not expect that there should be any freezing or closure of accounts due to the inability of accountable institutions to obtain identification and verification information, or any other information for the purpose of on-going due diligence where the information would have been necessary to have been obtained in a face-to-face manner.
The Authorities expect that accountable institutions would have already commenced with planning and discussions as to how these affected clients will be dealt with during and after Level 3 of the lockdown period. Accordingly, the Authorities expect that accountable institutions communicate detailed plans with requisite deadlines for completion, in writing to their respective supervisory body (FSCA) by no later than 7 business days after the Level 3 lockdown period. The Authorities require that each accountable institution that is affected, submit a plan that includes completion dates that do not extend further than 8 months from day one of the Level 3 lockdown period.
The remainder of the content of Communication 2 of 2020 as jointly issued by the Authorities remains applicable.
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