Page 53 - Profmark BSA Guide 2025

THE FINANCIAL INTELLIGENCE CENTRE ACT, 38 OF 2001

SA is a member of the Financial Action Task Force, the international body which sets
standards and policy on anti-money laundering and for combating the financing of
terrorism.
FICA is a comprehensive piece of legislation dealing with money laundering controls,
with the aim of fighting organised crime and terrorism, both locally and internationally.
FICA identifies certain sectors within business as particularly vulnerable to money
laundering and terror financing. These sectors are legally required to register with
the Financial Intelligence Centre (FIC) as an “Accountable Institution” (AI). They are
required to take steps regarding client identification, record-keeping, reporting of
information and internal compliance structures. An AI includes, inter alia a person who
carries on the business of a bank (as defined in the Banks Act, 1994 of 1990), an
estate agent, attorney, a board of executors or a trust company, a person who carries
on the business of dealing in foreign exchange, and long-term insurance service
providers, as well as those now included in the list on the previous page.
Cash transactions and FICA
AI’s are required to file a “cash threshold report” with FIC in regard to any cash
transactions involving domestic and foreign notes and coins, and travellers cheques
above R49 999 or an aggregate thereof.
Enforcement and Penalties
Non-compliance with FICA can lead to significant penalties, including fines and
imprisonment.

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