FICA

Financial Intelligence Centre Act

The Financial Intelligence Centre in South Africa and Namibia have recently reviewed FICA legislation. In Namibia this has resulted in the inclusion of accountants as Accountable Institutions. The South African FIC are considering similar amendments.

SAIBA will make a submission to the FIC of Namibia and South Africa to represent the views and interest of Southern African accountants. Complete the survey and make sure your voice is heard – Survey

The effect of these amendments will be that accountants will have to register with the FIC as Accountable Institutions. If they do not register they will not be able to perform their work leading to possible prosecution.

The amendments seek to improve measures to combat money laundering and terrorist financing.

View the webinar below.

The responsibilities of accountable institutions in terms of FICA

As an Accountable Institution accountants will have the following responsibilities:

  • Identify and verify new and existing clients.
  • Keep records of identities of clients and transactions entered into with clients.

If the client acts on behalf of a third party, records of the identity of the third party as well as a copy of the mandate between the client and the third party shall be obtained and retained in instances of concluding a single transaction, concluding transactions as part of a business relationship or establishment of a business relationship.

The method of identification and verification of particulars:

  • The exact nature of the transaction or business relationship.
  • The parties to a transaction as well as the monetary value thereof.
  • The particulars of the employee or representative that obtained the information.
  • The information, documentation or forms furnished by the client to verify the information.

Responsibilities in addition, to keeping records:

  • No person shall destroy any record, except if the destruction of such record was authorised by the responsible person.
  • No person shall amend any record kept in terms of FICA.
  • Report certain large or suspicious transactions to the Financial Intelligence Centre established by FICA.
  • Formulate and implement internal rules consistent with FICA obligations.
  • Offer compulsory FICA training to employees.
  • Appoint a responsible person as a compliance officer to monitor compliance.