In recent weeks the Financial Intelligence Centre (FIC) published Directive 6 of 2023 – which require specified accountable institutions including Property Practitioners (estate agency firms/franchises) to submit risk and compliance returns to the FIC on an annual basis and to complete a Risk and Compliance Return (RCR) Questionnaire.
The return must contain information regarding the accountable institution’s understanding of money laundering (ML), terrorist financing (TF) and proliferation financing (PF) risks, as well as its assessment of compliance with obligations in terms of the FIC Act.
STBB has drafted a new RMCP template for us which we submitted to both the PPRA and FIC for review. We have however been cautioned by both institutions that our template may only be used as a guideline to compile a compliant RMCP. The RMCP template MUST NOT BE USED AS IS. Practitioners MUST AMEND AND ADAPT it to suit the specific needs of their individual agencies, as required in the Financial Intelligence Centre Act.
We have also drafted for your convenience a note regarding custom-making the RMCP for your individual agencies in the attached documents below.
Information on Directive 6 can be found below and in the attached documents but please note the following:-
Regarding the questionnaires that the FIC requires of all property practitioners (as accountable institutions) to complete by 31 May 2023 (in Guideline 6):
- It is obligatory to complete.
- Make sure that each separate entity is registered with the FIC beforehand, as the form asks of the practitioner to provide ORG identity;
- The FIC is aware that some answers are not a simple YES or NO, and that an option for N/A should have been included. However, the questionnaire must be completed nonetheless.
- Certain statistics in the questionnaire may not be immediately available (for example, if the agency does not have systems in place to calculate how much of its clients over a 12-month period, were trusts.) · In these instances, make the best estimate that you can. Ensure in future to keep a register of these details, so that you can in 2024, answer the similar questionnaire accurately, with the details at hand.
The questionnaire is included below, so that you can prepare answers before going online and completing it.
It appears that there is no immediate way of receiving confirmation that you have successfully submitted the questionnaire. It is a good idea to take a screenshot, or photo of your last page, when submitting the final completed questionnaire.
DIRECTIVE 6 ON SUBMISSION OF RISK AND COMPLIANCE RETURNS TO THE FINANCIAL INTELLIGENCE CENTRE BY ACCOUNTABLE INSTITUTIONS
Please remember that each separate entity must register with FIC. So as soon as the estate agency entity has a different registration from another one, it needs to register with the FIC on the go-AML website by accessing the link below:-
Directive 6 serves to inform all accountable institutions that are designated non-financial businesses and professions that they must submit information regarding their understanding of money laundering (ML), terrorist financing (TF) and proliferation financing (PF) risks. They must also provide their assessment of compliance with obligations in terms of the Financial Intelligence Centre Act (FIC Act) to the FIC by 31 May 2023 through a risk and compliance return.
The reporting period for this risk and compliance return is from 1 April 2022 to 31 March 2023, both dates inclusive.
The deadline for submission to the FIC is 17:00 on 31 May 2023.
The Risk Compliance Return must be completed online using the link below:-
Please don’t forget that Public and Private bodies are required to register their Information Officers as per section 55 of POPIA with the Information Regulator.
If you have not registered, please do so by accessing the link below:-
If you have any queries, then please contact us.
Documents can be accessed using the links below:-