Financial Crime World

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How to Report Financial Crime in South Africa: A Guide for Accountable Institutions

The Financial Intelligence Centre (FIC) plays a crucial role in combating money laundering and terrorist financing in South Africa, and as such, Accountable Institutions have an important responsibility in assisting the FIC in its efforts. According to the Financial Intelligence Centre Act (FICA), Accountable Institutions are required to report any suspicious behavior or transactions that may be indicative of financial crime.

Reporting Requirements

In this article, we will provide a handy guide on identifying and reporting suspicious behaviors and transactions as outlined in chapter 3 of FICA. We will cover the following key areas:

Reporting Cash Transactions Above the Prescribed Limit

As per section 28 of FICA, Accountable Institutions are required to report any cash transaction exceeding R49 999. This includes single transactions or a series of related transactions that exceed this threshold.

  • Note: This requirement is outlined in section 28 of FICA.
  • Examples of when to report:
    • A customer deposits R50,000 in cash
    • Multiple customers deposit small amounts of cash, totaling R50,000

Section 28A of FICA requires Accountable Institutions to submit reports on property associated with terrorist and related activities, known as Terrorist Property Reports (TPRs).

  • Note: This requirement is outlined in section 28A of FICA.
  • Examples of when to report:
    • A customer purchases a property using funds that may be linked to terrorism
    • A customer attempts to purchase a property on behalf of a sanctioned individual

Reporting Suspicious and Unusual Transactions

According to section 29 of FICA, Accountable Institutions are required to report any transactions that may cause them to experience apprehension or skepticism. This includes transactions that are unusual in nature, circumstances, the person or entity involved, or the transaction amount.

  • Note: This requirement is outlined in section 29 of FICA.
  • Examples of when to report:
    • A customer makes a large wire transfer to an unknown recipient
    • A customer attempts to use a credit card for a transaction that exceeds the card’s limit

Getting Assistance

To assist Accountable Institutions in fulfilling their reporting duties, DocFox has put together a comprehensive guide on identifying and reporting suspicious behaviors and transactions. Click here to access your copy of the guide and unlock the financial crime superhero within you.

The DocFox Compliance Team is available to provide guidance on FICA-related matters, including:

  • Preparing for a FIC inspection
  • Responding to a FIC report
  • Submitting Suspicious Activity or Transaction Reports (SARs)

Get in touch with us at [email protected] for more information.

For more information on FICA compliance and related topics, check out our other articles:

  • “DocFox and the Law Society of South Africa have partnered to make FICA compliance easier than ever before”
  • “Financial Intelligence Centre Act: Increase in the number of sectors as accountable institutions”
  • “Significant developments in reporting beneficial ownership”
  • “Risk and compliance reporting: Legal practitioners not above the law”