FICA

Overview

Introduction
Holistic Compliance offers services to all Accountable and Reporting Institutions including FICA training for your employees, and the implementation of FICA requirements in your business.

What is FICA?
FICA is an abbreviation for the Financial Intelligence Centre Act 38 of 2001 (as amended) which was instituted to fight financial crime such as money laundering, fraud, tax evasion, terrorist financing activities and identity theft.

The purpose of FICA and why it is necessary
FICA is a legal framework which exists to help identify the proceeds of unlawful activities and to combat activities related to money laundering, terrorist funding and tax evasion. Various control measures within FICA aim to ensure the detection and investigation of money laundering.

Key control measures in FICA require that:

• Accountable Institutions must adopt a Risk Based Approach
• Customer Due Diligence and the responsibility on Accountable Institutions to know who they are doing business with must be conducted.
• Record-keeping
• Accountable Institutions must do sanctions screening and in certain circumstances will be required to report to the FIC.
• A Risk Management and Compliance Programme (“RMCP”) that comprises of policy documents, procedures, systems and controls must be developed, documented, maintained, and implemented by Accountable Institutions.
• The responsibility for FICA compliance lies with Directors in the case of a legal entity or senior management.

Who does FICA apply to?
Financial services providers (FSP’S), attorneys, trustees and executors, estate agents, motor dealers, investment management companies, bankers and Accountable and Reporting Institutions as defined in schedule 1 of the Act.