The Financial Intelligence Centre Amendment Act 1 of 2017 (the FICA Amendment Act), was published in Government Gazette 40821 of 2 May 2017. This serves to amend the 2001 FICA Act, which aims to combat financial crimes, such as tax evasion, money laundering and terrorist financing activities. The purpose of the Amendment Act is to ensure greater transparency and integrity within South Africa’s financial system.
The requirements of the Amendment Act are stringent, and in the event of conviction of an offense, the penalties can be severe. Therefore the Amendment Act’s impact on South African business is considerable, and is not to be taken lightly. It is thus crucial for businesses to understand how the Amendment Act affects them so that they may fulfil their responsibilities under the Amendment Act.
Who is affected by the Amendment Act?
“Accountable institutions” are identified by the Amendment Act, including banks, estate agents, attorneys, and businesses providing money remittance services, long-term insurance services and foreign exchange. Furthermore, the Act further affects all clients and consumers who enter into either a single transaction or a business relationship with any of these aforesaid accountable institutions.
The FICA Amendment Act will have a major impact on your business if it falls into any of the above categories.
Salient ways in which businesses will be affected by the FICA Amendment Act:
Therefore, it is advisable that accountable institutions, as well as clients and consumers entering into transactions or business relationships with such institutions, familiarise themselves with the FICA Amendment Act to ensure their compliance.
Ashley Adriaans | Director | Dispute Resolution: Litigation & Arbitration
Nicholas Meyer | Candidate Attorney
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)