Having just returned from the Financial Intelligence Centre’s Road Show for accountable and reporting institutions in Cape Town, I can confirm that there is enough time before you have to report transactions and activities to the FIC in terms of the ‘new’ guidelines. For now it’s business as usual and we keep on doing what we have done for years.
This being said, in terms of the FIC Act, you were required to register with FIC and receive your ORG ID on the goAML reporting platform. Failure to register is an offence and subject to a fine not exceeding R10 million or imprisonment for a period of up to 5 years. The FIC may also, in terms of section 45C (1) of the FIC Act, impose an administrative sanction for a failure to comply with any provision of the FIC Act, including a failure to register. If you have not already registered, please do so immediately on www.fic.gov.za
We have received numerous enquiries in respect of the new guidelines from the FIC and many agents are concerned about the implementation dates and deadlines etc.
We have spent considerable time and money to consult with our attorney’s, Cliffe Dekker Hofmeyr and attached to this report is an executive summary as well as a pro forma Risk Management and Compliance Programme (“RMCP”) for your attention. This is for your use and you can insert your agency’s name where applicable.
However, there is no final implementation date as yet.
It is the responsibility of the EAAB and, failing them, the FIC to set a date for the implementation of these new guidelines and until that happens you are under no obligation. It obviously serves a purpose to study the documents and get your systems in place so that you can implement same.
One of the rumours we have to address regularly is when and in respect of whom Customer Due Diligence (CDD) (or previously Know Your Client – KYC) must be done. Client identification and verification only needs to happen before the receipt of value (money). Therefore, CDD is not relevant and does not need to occur when taking a mandate or taking a buyer to a property. See paragraph 4.10 of the Executive Summary.
I would like to reiterate that it will serve you well to study the document in detail and familiarise yourself with the acronyms, as it will assist you going forward and will put your mind at ease. It seems daunting but it is not.
We are planning a series of member meetings to supply training and further information once we manage to obtain a response from the EAAB as far as implementation is concerned.
Please also visit our website, where we have published documentation, organograms and step by step guides from the FIC.
Positive feedback at the Roadshow was the fact that many criminals have been prosecuted thanks to the efforts of FIC so all of this effort is not in vain.
We will keep you posted of all further developments.
Download the Memorandum and RMCP Template below.