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Financial Intelligence Centre Amends Act to Strengthen Anti-Money Laundering and Combating the Financing of Terrorism Measures

January 6, 2023: The Financial Intelligence Centre (FIC) has amended the Financial Intelligence Centre Act (FIC Act) to enhance its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. The amendments aim to strengthen the country’s efforts in preventing financial crimes and maintaining a safe and stable financial system.

Key Changes

• New definitions for:
  • Beneficial ownership
  • Domestic and foreign politically exposed persons
  • Prominent influential persons
  • Proliferation financing
• Accountable institutions required to conduct additional due diligence measures and provide ongoing reporting of suspicious transactions

Additional Provisions

• Dealing with doubts about the veracity of information
• Aligning schedule amendments to distinguish between prominent influential persons and other categories
• Provisions related to United Nations Security Council (UNSC) Resolutions
• Risk management and compliance programs

Commitment to Effectiveness

“We are committed to ensuring that South Africa’s financial system is robust and resilient against money laundering and terrorist financing,” said [Name], Chief Executive Officer of the Financial Intelligence Centre. “These amendments demonstrate our commitment to staying ahead of emerging threats and maintaining a high level of cooperation with international partners.”

Financial Intelligence Centre

• Uses financial data reported to it and other available data to develop financial intelligence
• Shares financial intelligence with law enforcement agencies, South African Revenue Services, and supervisory bodies for follow-up investigations or administrative action

Supervision and Enforcement

• Financial Sector Conduct Authority (FSCA) responsible for supervising and enforcing compliance with the FIC Act
• FSCA established a dedicated AML/ CFT Supervision department to carry out its responsibilities

International Cooperation

• South Africa is a member of the Financial Action Task Force (FATF), an inter-governmental body that sets global standards for combating money laundering and terrorist financing
• FATF placed South Africa on its grey list in February 2023 due to strategic deficiencies in its AML/CFT regime

Assistance to the Financial Sector

• FSCA will continue to develop and publish tools to assist the financial sector in improving their level of compliance, including:
  • Reviewing and publishing the AML/ CFT Body of Knowledge
  • Conducting webinars and workshops
  • Providing regular updates on international developments

Related Links

• Financial Intelligence Centre Act Amendment: https://www.gov.za/acts/general-laws-amendment-act-no-22-of-2022
• FIC Schedules: https://www.fic.gov.za/Pages/Home.aspx
• FATF Website: https://www.fatf-gafi.org/en/home/
• ESAAMLG Website: https://www.esaamlg.org/

Contact

Financial Action Task Force (FATF) Email: fatf@fic.gov.za Phone: +27 12 333 1000

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