The financial intelligence entre is south africas national centre for. The fica act amends the existing financial intelligence centre act 2001 to strengthen south africas. Electronic communications and transactions act, 2002 no. Sep 11, 2017 an introduction to the key amendments in the financial intelligence centre amendment act, no 1 of 2017 the fic amendment act a. The south african reserve bank sarb conducted amlcft antimoney laundering and combating the financing of terrorism inspections at absa bank limited absa, firstrand bank limited firstrand, nedbank limited nedbank, and the standard bank of south africa limited standard bank. Notice by the director in terms of section 26a3 of the financial intelligence centre act, 2001 the minister of finance has announced the date of 1 april 2019 as the date that the sections in the financial intelligence centre act, 2001 fic act relating to targeted financial sanction tfs come into effect.
This act became effective on 1 may 2011 and should be read with the companies amendment act, no 3 of 2011, and the companies regulations, 2011. However, the regulations therein not only pertain to transgressors. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Exemption 4 and sections 27 and 32 of the fic act 5. An introduction to the key amendments in the financial intelligence centre amendment act, no 1 of 2017 the fic amendment act a. The financial intelligence centre amendment act, 2017 fic amendment act came into effect on 2 october 2017 and has forced fsps to move to a riskbased rather than a rulesbased approach, which modernises the way institutions conduct. Prevention of organised crime amendment act 24 of 1999. The financial intelligence center is mandated to publish the trends report, its director general mary chirwa has clarified.
In this guideline, unless the context indicates otherwise. Financial intelligence centre was established under section 3 of the financial intelligence centre act no. The financial intelligence centre fic was established in terms of the financial intelligence centre act, 2001 act 38 of 2001 fic act. Reporting obligations in terms of the financial intelligence. Under fica, the fic works to maintain south africas financial system, and promote economic growth and social development. It was after south africa joined the fatf in 2003 that the state adopted the financial intelligence centre.
Fic amendment act published financial intelligence. The fic is not an investigative body the fic is responsible for collecting, processing, analysing and interpreting reports received from accountable institutions. The financial intelligence centre fic has issued public compliance communication 48, which provides guidance on fic act compliance obligations to accountable institutions that offer life insurance products. The booklet provides nine different case studies that illustrate different types of criminal activities. Noncompliance with the fic act, regulations and internal rules. What is the financial intelligence centre act fica. Pdf the phenomenon of corruption in the south african. Post evaluation progress report of south africa on amlcft measures page 2 of sr. Prevention of organised crime act 121 of 1998 page 5 of 57. Order approving the establishment of a representative. With acts you are guaranteed the latest and most up to date resource for your legislative needs. The act expressly provides that records must be kept in written form, or other form or manner. The financial advisory and intermediary services act, 2002 act no.
A narrative overview of workplace dispute article pdf available in journal of governance and regulation print 44 september 2015 with. Overview of the financial intelligence centre act, 38 of 2001 south africa has implemented law that is designed to combat money laundering, which is the abuse of financial systems in order to hide and or disguise the proceeds of crime. Financial intelligence centre amendment act finmark trust. Whereas the bill of rights in the constitution of the republic of south africa, 1996 act no. This requirement was first introduced in sa in 2001 by the fic act. The amendments support south africas economic growth by ensuring that south africa remains part of the global financial system which facilitates trade and investment flows. Any employee of boshoff visser konsult pty ltd, who fails to comply with the provisions of the fic act, its regulations and the internal rules, whether through negligence or intent, will be formally disciplined in accordance with the fsps disciplinary policy and. Whereas the bill of rights in the constitution of the republic of south africa, 1996 act 108 of 1996, enshrines the rights of all people in the republic and affirms the. With the turn of the season comes the start of a new acams south africa chapter year. Authority means the independent communications authority of south africa established by section 3 of the independent communications authority of south africa act, 2000 act of 2000. Why the fic act was amended as part of an ongoing effort to strengthen the antimoney laundering and countering the financing of terrorism amlcft measures in south africa, national treasury and the financial intelligence centre fic have amended the fic act. Act and arrangements on consultation with stakeholders on matters of mutual interest.
Fic amendment act impacts client onboarding process. Financial intelligence centre act 38 of 2001 south african. The financial intelligence centre act of 2001 was amended by the financial intelligence centre amendment act of 2017, which provided for certain provisions of the amendment to come into effect. Index the financial intelligence centre act, 2001 170 money laundering and terrorist financing control regulations 71108 exemptions in terms of the fic act, 2001 109127 prevention of organised crime act, 1998 128209. Protection of constitutional democracy against terrorist and related activities, 2004 act no. Financial intelligence centre act 38 of 2001 south. The fic act works in concert with the prevention of organised crime act, 1998 act 121 of 1998 and the protection of constitutional democracy against terrorist and related activities act, 2004 act 33 of 2004. The financial intelligence centre act, no 38 of 2001 fica. Jul 09, 2018 south africas regulator, the financial intelligence centre fic, recently released a booklet that provides insight on some of the methods criminals use to abuse the financial system. In 2001, the south african government introduced the financial intelligence centre act fica and other applicable anti money laundering and countering of the financing of terrorism legislation to combat money laundering and the financing of terrorism.
May 25, 2017 on april 29, 2017, south african president jacob zuma signed into law the financial intelligence centre amendment act, 2017, amending the financial intelligence centre act of 2001, an act designed to combat money laundering and the financing of terrorism. National commissioner means the national commissioner of the south african police service referred to in section 207 of the constitution of the republic of south africa, 1996 act no. Services act, 2004, as amended by the financial services laws general amendment act, 2008, so as to align. In this issue i trust this newsletter finds you all in good health and back at work.
Mar, 2018 the financial intelligence centre amendment act, 2017 fic amendment act came into effect on 2 october 2017 and has forced fsps to move to a riskbased rather than a rulesbased approach, which modernises the way institutions conduct customer due diligence in relation to financial transactions. Reporting obligations in terms of the financial intelligence centre act all accountable institutions, including financial services providers fsps and long term insurance businesses listed in item 8 and 12 of schedule 1 of the financial intelligence centre act no. This law is known as the financial intelligence centre act, 38 of 2001, abbreviated to fica. Pdf icon, financial intelligence centre amendment act, 2017. The companies act, no 71 of 2008, consolidates and amends the law that relates to companies. The fic is also in progress to amend the schedules and they are in discussions with. This is an unofficial text of the financial intelligence centre act, 2001, the money laundering and terrorist financing control regulations and the exemptions in terms of the financial intelligence centre act. This is commonly known as knowyourcustomer kyc or customer due diligence cdd. The fic has finalis ed substantial amendments to the fic act fica regarding themanner in which. Financial intelligence centre amendment act, 2017 act no. The fic act mandates the pa, in terms of section 45, to supervise and enforce. The fic act brings south africa in line with similar legislation in other countries designed to reveal the movement of monies derived from unlawful activities and thereby curbing money laundering and other criminal activities. An act to amend the financial intelligence centre act, 2010.
The steps and procedures taken to identify and verify clients. The financial intelligence centre act, no 38 of 2001 fica the fica established a financial intelligence centre and a countermoney laundering advisory council in order to combat money laundering activities and the financing of terrorist and related activities and to impose certain duties on institutions and other persons who might be used for money laundering purposes and the financing of. In terms of the financial intelligence centre act, no. South african reserve bank imposes administrative sanctions. Legislation and employment relations in south africa. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. The financial intelligence centre act 38 of 2001 intends. Vision the fic strives for a safer future for all south africans in which the financial system has integrity and transparency to support economic growth and social development.
Pressure from the fatf and the international environment to implement effective money laundering control legislation led to the development of the financial intelligence centre act. The financial intelligence centre amendment act 1 of 2017 the amendment act, was published in government gazette 40821 of 2 may 2017 attorneys, as accounting institutions, are required to comply with the new provisions introduced by the amendment act and must familiarise themselves with the relevant provisions, in particular, the insertion of ss 21a to 21h. Practicing attorneys, as defined in terms of s 1 of the attorneys act 53 of 1979, form part of a list of institutions which are termed accountable institutions ais under sch 1 of the financial intelligence centre act 38 of 2001 the act. South africas commitment to the implementation of tatf recommendations codified in fica meant south africa became the first african country to become a fully.
Financial intelligence centre amendment national assembly. South africas regulator, the financial intelligence centre fic, recently released a booklet that provides insight on some of the methods criminals use to abuse the financial system. Business refers to organisation, institution or entity ies and can be used interchangeably. The financial intelligence centre amendment bill, 2015. The property practitioners act b212018 the new act has recently been adopted by parliament. Be it enacted by the parliament of the republic of south africa.
The guideline must be read in conjunction with the fic act and the regulations for definitions of terms used in the guideline. Everything you need to know about the fic amendment bill. The fic act was introduced to fight financial crime, such. The amendment act was signed into law by president jacob zuma on 26 april and gazetted on 2 may gn396 gg40821252017, but the determination of the commencement date was left to the minister of finance. Financial intelligence center mandated to publish the. English text signed by the president assented to 26. Knowyourcustomer kyc or customer due diligence cdd. Terms of reference financial intelligence centre act. Financial intelligence centre act pule incorporated.
The amendment of the act, by virtue the promulgation of the fic amendment act together with various judicial rulings in respect thereof, demonstrates south africas. Pcc29 clarity on the application and use of exemption 4 accountable institution may cite this exemption should a transaction relating to their client become reportable. The fic act is designed to enable authorities to better understand the movement of money in order to reveal unlawful activities. Fica is an attempt by south africa to conform to international standards set by the financial action task force fatf requiring financial and other entities to know the customers they provide services to i. The financial intelligence centre amendment act 1 of 2017 the amendment act, was published in government gazette 40821 of 2 may 2017 attorneys, as accounting institutions, are required to comply with the new provisions introduced by the fic amendment act and must familiarise themselves with the relevant provisions, in particular, the insertion of ss 21a to 21h. The financial intelligence centre was established as south africas financial intelligence unit in february 2002, when the financial intelligence centre act, act 38 of 2001 the act was promulgated. Fic amendment act published insights into the law in south. A number of sections of the financial intelligence centre amendment act 1 of 2017 the amendment act were gazetted recently. B e it enacted by the parliament of the republic of south africa, as follows. The amendments are designed to bring south africas amlft. Be it enacted by the parliament of the republic of south africa, as follows. Act to provide for the facilitation and regulation of electronic communications and. An introduction to the key amendments in the fic amendment act.
Industry, and specifically accountable institutions under the financial intelligence centre act, no. The fic act established the fic in 2003 to administer the fic act, as south africas national centre for the development of financial intelligence in accordance with international standards and requirements. Financial intelligence centre of south africa skip ribbon commands. Amended by financial intelligence centre amendment act 1 of 2017 amended. Press release, president jacob zuma signs fica bill into law, south african government website apr. South africa is a member of the financial action task force fatf regional organization, and absa bank has indicated that fatf recommendations have been implemented through the promulgation and implementation of the financial intelligence centre act, 2001. Pdf legislation and employment relations in south africa. The centre started to receive the first suspicious transaction reports strs in february 2003.
South africa the prudential authority pa has imposed an administrative sanction on bank of baroda, south africa bank of baroda for noncompliance with certain provisions of the financial intelligence centre act 38 of 2001, as amended fic act. The fic must inform, advise and cooperate with investigating authorities such as the south african police, national directorate of public prosecutions and the south african receiver. The financial intelligence centre amendment act, 2008 act 11 of 2008. The financial intelligence centre act 38 of 2001 the fic act came into effect on the 1st of july 2003. The old act regulates certain activities of estate agents and is limited to that extent, whereas the new act is broad and deals with numerous problems currently facing the property market. Financial intelligence centre amendment act 1 of 2017 english.
Electronic communications and transactions act, 2002. Financial advisory and intermediary services act, 2002 act. Chirwa said the product of strategic analysis includes risks, trends and methods in money laundering which the fic communicates to the public and other stakeholders through its trends report. Financial intelligence centre act banking association of south africa.
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