As you are aware, many changes to the FIC Act are being implemented in South Africa’s efforts not to be grey-listed.
New regulations regarding reporting obligations in respect of international fund transfers in excess of R19 999 become operative today. Note that the obligation to report international fund transfer transactions in terms of section 31 of the FIC Act will only apply to accountable Institutions that fall within the scope of Items 6, 12 and 19 of Schedule 1 to the FIC Act. These are institutions that are authorised in terms of the regulations under the Currency and Exchanges Act to conduct authorised transactions.
In effect, the requirement to report international fund transfers in excess of R19 999 refers only to the following institutions:
- Authorised Dealers;
- Authorised Dealers with limited authority;
- A category of financial services providers that have a direct reporting dispensation under the Exchange Control Regulations; and
- The Post Office.
This excludes estate agencies and attorney firms, amongst others.
Contact STBB should you require any further assistance.