In news reports this week, the Financial Intelligence Centre (FIC) has again lamented the fact that many accountable institutions remain non-compliant with its directives and the provisions of the Financial Intelligence Centre Act.
The effect hereof, it records, is that the culprits – some 60% of legal practitioners and 66% of estate agents – prejudice South Africa’s efforts to exit from the grey list.
The FIC’s concern relates in particular to these accountable institutions’ non-compliance with the requirement to have submitted a Risk and Compliance Return by the initial due date of 31 July 2023, despite the FIC having extended this date on more than one occasion.
Non-compliant institutions are at a real risk of administrative sanctions, which may reach a maximum of R10m for individuals and R50m for juristic persons. In March this year, the FIC had already issued 302 notices of an intention to sanction.
Some argue that they are not required to comply because they are sole practitioners or do not receive funds from clients, or for other reasons. This is incorrect and there are no such exceptions.
Contact us at compliance@stbb.co.za for assistance to ensure that you become fully compliant.
