Financial Intelligence Centre: Directive 6 of 2023
On 31 March 2023, the Financial Intelligence Centre (hereinafter referred to as “FIC”) issued three directives requiring submissions of risk and compliance returns from certain accountable institutions. In this article, we will take a closer look at these directives and their implications for property practitioners in South Africa.
Directive 6 of 2023
This directive is specifically applicable to all accountable institutions listed in items 1, 2, 3 and 9 of Schedule 1 of the Financial Intelligence Centre Act (hereinafter referred to as “FICA”). Estate agents or property practitioners are defined as accountable institutions in item 3 of Schedule 1 of FICA. Therefore, every property practitioner is responsible to submit a compliance and risk return on their understanding of money laundering, terrorist financing and proliferation financing as well as their assessment of compliance with obligations set out in FICA. Electronic submissions will be accepted for the reporting period 1 April 2022 to 31 March 2023.
To access the electronic return under Directive 6, click on the link at the end of the first paragraph on the Web Notice. In respect of question 7 regarding the applicable sector to you, property practitioners should select “Schedule Item 3”, and answer the remaining questions as prompted. FICA will impose an administrative sanction on you if you fail to submit the return by 17h00 on 31 May 2023.
Directive 7 of 2023
This directive is not applicable to property practitioners and as such is not required to be completed by property practitioners.
Directive 8 of 2023
In accordance with this directive, all accountable institutions are required to adequately screen prospective and current employees for competence and integrity, as well as to verify employee information regarding targeted financial sanctions lists to identify, assess, monitor, mitigate, and manage the risk of money laundering, terrorist financing, and proliferation financing. Property practitioners must keep a record of the outcomes of the above-mentioned screening of prospective employees and current employees, and they shall be required to submit such records to FIC upon request. There is no return or information to submit to FIC under this directive.
If you have any questions regarding the FIC Directives, please contact us at email@example.com
– The TPN from MRI Software Legal team
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