Financial Crime World

Financial Intelligence Centre (FIC) and United Nations Security Council (UNSC) Sanctions Lists in South Africa

Overview

The Financial Intelligence Centre Act of 2001 regulates the Financial Intelligence Centre (FIC) in South Africa, which is responsible for fighting financial crimes and money laundering. This article focuses on key points related to the UNSC sanctions lists that accountable institutions must follow.

Accountable Institutions

  • Responsibility: These institutions are required to search for their clients against the UNSC sanctions list during the client onboarding process and on an ongoing basis.
  • Role in Sanctions Compliance: It is essential for these institutions to be proactive in identifying potential sanctioned individuals or entities, ensuring they adhere to regulations.

Sanctions List Search Criteria

The FIC provides a list with various search criteria to help accountable institutions narrow down search results. These include:

  • Name and Surname
  • Date of Birth
  • Nationality
  • Identifying Number
  • Aliases

By using these search criteria, institutions can efficiently identify potential matches against the sanctions list.

Validating Search Results

It is the responsibility of accountable institutions to review the search results and make a determination as to their validity. This involves verifying information through additional sources to ensure accuracy.

Screening Against Lists

Accountable institutions must screen clients against the sanctions list, not only during onboarding but also when new measures are adopted by the UNSC. This ensures that institutions remain compliant with regulations at all times.

Permitted Financial Services

The Minister of Finance can permit financial services or dealings with property affected by a sanction for:

  • Basic Living Expenses
  • Third-Party Contractual Agreements that occurred before the designation

This provision allows for flexibility in exceptional circumstances while maintaining overall compliance.

Reporting Obligations

Businesses and accountable institutions must report to the FIC if they suspect their client may be a positive match. This includes filing:

  • Suspicious Transaction Reports
  • Terrorist Property Reports
  • Both reports, as applicable

Reporting is crucial for identifying potential sanctioned individuals or entities.

FIC Registration

All persons or entities wishing to report to the FIC must first register with the Centre. This registration process ensures that only authorized parties can submit reports.

UNSC Consolidated List Updates

The FIC sends automated alert notifications via email about updates to the UNSC consolidated list to registered users. This keeps institutions informed and up-to-date on changes to the sanctions list.