BACKGROUND
Amendments to Schedules 1, 2 and 3 to the Financial Intelligence Centre Act (FIC Act) came into effect on 19 December 2022 thereby strengthening the fight against money laundering, terrorist financing and proliferation financing for South Africa. (See media release for more information)
The amendments affect accountable institutions listed in Schedule 1, supervisory bodies listed in Schedule 2, and reporting institutions listed in Schedule 3 of the FIC Act.
Amendments to items listed in Schedule 1 broaden the application of the FIC Act by including additional categories of institutions and businesses under its scope. The categories of accountable institutions include co-operative banks, crypto asset service providers (CASPs), high-value goods dealers, the South African Mint Company, trust and company services providers, and payment clearing service operators.
The inclusion of additional sectors as accountable institutions will also align South Africa's anti-money laundering, counter terrorism financing and proliferation financing framework more closely with the international standards set out by the Financial Action Task Force (FATF).
New as well as existing categories of institutions and businesses listed as accountable institutions are required to fulfil certain FIC Act regulatory obligations, including:
All Schedule 1 FIC Act compliance obligations are premised on institutions implementing a risk-based approach to combating money laundering and terrorist financing.