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Sanctions Regime: Prohibitions, Reporting Obligations, and Screening Requirements

The Financial Intelligence Centre (FIC) has reiterated the importance of complying with sanctions regulations under the Prevention and Combating of Terrorist and Proliferation Financing Act (FIC Act). Specifically, sections 26B and 26C, 28A(1)(c), and 29(1)(b)(vi) of the FIC Act outline the prohibitions, reporting obligations, and screening requirements that accountable institutions must adhere to.

Prohibitions

Accountable institutions are prohibited from:

  • Acquiring, collecting, or using property belonging to individuals or entities listed on the United Nations Security Council (UNSC) Consolidated List of Sanctions
  • Providing financial services and products to such individuals or entities
  • Conducting any financial transactions with sanctioned persons or entities, except in specific instances where the Minister of Finance has permitted certain transactions

Reporting Obligations

In cases where a client is listed on the UNSC Consolidated List:

  • A Terrorist Property Report (TPR) must be submitted to the FIC If there are suspicions of transactions or activities linked to a sanctioned person or entity, but the institution cannot confirm this as a fact:
  • A Suspicious Activity Report (SAR) or Suspicious and Unusual Transaction Report (STR) must be filed with the FIC

Screening Requirements

Accountable institutions must:

  • Screen their clients against the UNSC Consolidated List during the onboarding process
  • Screen on an ongoing basis
  • Screen when new sanctions measures are adopted, including adopting a new sanction regime under Chapter VII of the UNSC

Freezing Assets

Once a report is filed with the FIC relating to a person or entity on the TFS list:

  • All associated property must be frozen
  • No further business transactions may be conducted with the entity in question

Registration and Reporting

All reporting to the FIC must be done via the online registration and reporting platform, GoAML. Accountable institutions must:

  • First register on this platform before submitting reports
  • Access the platform through the FIC website

Stay Informed

The FIC publishes updates to the UNSC Consolidated List on its website. Subscribers can receive automated email notifications of these updates by registering for free alerts on the FIC website.

Additional Resources

For more information on sanctions regulations, screening requirements, and reporting obligations:

  • Visit the FIC website
  • Contact the FIC Compliance Centre at +27 12 641 6000 or log an online compliance query