Financial Crime World

Financial Intelligence Centre Act: A Guide to Sanctions and Reporting Obligations

The Financial Intelligence Centre Act (FIC Act) has been introduced to prevent financial institutions from transacting with individuals or entities listed on the Terrorist Financing Sanctions List (TFS List). The FIC Act prohibits the acquisition, collection, or use of property owned by persons or entities listed on the TFS List.

Prohibited Transactions

  • Accountable institutions are strictly prohibited from providing financial services to individuals or entities listed on the TFS List.
  • This includes processing transactions, providing loans, and engaging in any other form of financial activity.
  • The only exception is when the Minister of Finance grants permission for certain financial services or dealings with property.

Screening and Reporting Obligations

  • Accountable institutions are required to screen clients against the TFS List during the client onboarding process, as well as subsequently and whenever new sanctions measures are adopted by the United Nations Security Council (UNSC).
  • If a match is found, the institution must report the transaction to the Financial Intelligence Centre (FIC) immediately.
  • The FIC has established an online registration and reporting platform, GoAML, where institutions can submit reports.

Types of Reports

  • Terrorist Property Reports (TPRs): submitted when there is a match between a client’s information and the TFS List.
  • Suspicious Activity Reports (SARs): submitted when there are suspicions of terrorist financing or other criminal activity.

Freezing Assets

  • Once a report is submitted to the FIC, the institution must freeze the associated property and cease all business dealings with the entity in question.
  • This includes assets such as bank accounts, securities, and other financial instruments.

Stay Up-to-Date

  • Subscribe to our newsletter for regular updates on sanctions, reporting obligations, and more. Visit our website to register for updates.

Contact Us

  • For further guidance or assistance with reporting obligations, contact the FIC Compliance Centre at +27 12 641 6000 or log an online compliance query.
  • By complying with these measures, South African financial institutions can play a critical role in preventing the financing of terrorism and supporting global efforts to combat this threat.