Page 13 - Business Sense-11.3 Rajesh Lutchman eBook

BREAKING DOWN THE FIC ACT

A QUICK GUIDE FOR ACCOUNTABLE INSTITUTIONS

Sameer Kumandan, weapon in the fight against an independent agency responsible to the business and its clientele. businesses, money or value transfer
Managing Director, financial crime, addressing issues for receiving, analysing, and Customer due diligence practices services, and real estate agents and
SearchWorks like money laundering, terrorist disseminating financial intelligence will determine the verification property developers.
financing, and corruption. By reports. The FIC is authorised to of customer identities based on
s is disrupting the financial networks collaborate with law enforcement assessed risk levels, while the KYC How can SearchWorks help?
generally of criminals and terrorist agencies to guide accountable process will require a more in- SearchWorks can assist
Athe organisations, the Act contributes institutions and support depth understanding of customer accountable institutions ensure
case with new to the stability and integrity of investigations and prosecutions backgrounds, business activities, they carry out their due diligence
legislation, most South Africa’s financial system, that are related to financial crime. and the sources of funds. in terms of accurate KYC and
businesses will safeguarding its reputation to To this end, accountable KYB (know your business) checks,
only take it attract foreign investment. To play their part, accountable accurately and without hassle. Our
seriously once From a consumer perspective, institutions are required to adhere institutions are responsible for data aggregation platform provides
an inspector the legislation acts as a shield by to Anti-Money Laundering and the timely reporting of suspicious comprehensive information on
comes preventing financial scams and Counter-Terrorism Financing transactions and activities to the individuals, businesses, trusts, and
knocking. This should not be identity theft, to foster greater trust (AML/CFT) obligations, which FIC through suspicious activity properties in South Africa, offering
the case. Although the Financial in the financial sector. In terms include customer identity reports. Such institutions will also various search types suitable for
Intelligence Centre Act (FICA) was of national security, the Act plays verification, transaction need to implement meticulous purposes like KYC, AML/CFT, and
created to prevent financial crime, a critical role in reducing the risk monitoring, risk mitigation record-keeping of transactions due diligence.
following the guidelines set out in of terrorist attacks and impeding measures, and staff training for and customer information for
compliance. The Act also puts in
the Act will also help businesses organised crime. Additionally, a specified period (a minimum With a commitment to full
protect their reputation and by aligning with international place clear reporting thresholds of five years) while conducting compliance with the FIC Act,
enhance client onboarding, while standards, the FIC Act promotes and triggers for suspicious employee training on AML/CFT SearchWorks encourages
reducing their risk and ultimately global cooperation, strengthening transactions and financial procedures and the recognition of organisations to leverage this
attracting a more desirable the collective effort against indicators. suspicious activities. requirement to create additional
clientele. With this in mind, illegal financing. In essence, this What does compliance with the business value. By reducing
compliance should be viewed by legislation is indispensable in FIC Act entail? Who/what are accountable fraud, safeguarding reputation
institutions?
accountable institutions as an ensuring a resilient, secure, and and capital, and streamlining
opportunity and be approached inclusive financial environment for Adhering to compliance While the full list of “accountable reporting and compliance duties,
proactively, says Sameer South Africa. expectations under the FIC Act institutions” can be found in organisations can effectively
Kumandan, managing director of involves implementing an internal Section 1 of the Act, generally navigate and benefit from
SearchWorks, an innovative data What are the key elements of the AML/CFT programme, which speaking, an institution is regulatory pressures. 
platform that allows businesses to FIC Act? includes the establishment of considered accountable if it is an
conduct accurate, in-depth Know The FIC Act is aimed at robust policies, procedures, and entity susceptible to being used For more information contact:
Your Client (KYC) checks online. preventing financial crime in controls for managing Money for ML/TF. This includes banks, T: +27 (0)86 034 0000
Laundering (ML) and Terrorist
Why is the FIC Act so important? South Africa by addressing Money Financing (TF) risks. credit providers, securities firms, E: info@searchworks.co.za
W: www.searchworks.co.za
and insurance companies, as
Laundering (ML), Terrorist
The FIC Act holds immense Financing (TF), and the financing A critical aspect of compliance well as dealers in cash, precious
significance for South Africa’s of the Proliferation of Weapons of in this regard requires accountable metals, and gemstones, along
financial system and national Mass Destruction (WMD). At its institutions to conduct a thorough with attorneys, accountants, and
security on multiple fronts. core, the legislation establishes the risk assessment to identify and auditors. The list also includes
Primarily, it acts as a powerful Financial Intelligence Centre (FIC), evaluate ML/TF risks specific casinos and other gambling

ENTRIES ARE OPEN FOR THE ENTREPRENEUR 2025

he Entrepreneur 2025 study, and inspiring success (UKZN), which include tuition presented in partnership with Entry forms are also
has taken off! The stories from past winners. and mentorship. The programme Enterprise iLembe, Airports available from the iLembe
TiLembe Chamber will commence on 26 July 2025 Company South Africa, The Chamber offices or various
This impactful annual
launched the 15th edition of its competition is designed to elevate and will run until October 2025. North Coast Courier, Siza Water, entry box locations across the
flagship business accelerator local entrepreneurs, build lasting Competition winners will be AVON Peaking Power, and district. For more information,
programme, celebrating impact, and unlock real growth. judged on the perceived potential ENGIE Peakers Operations. contact Sakhile Khumalo
the empowerment of local of their businesses, programme on +27 (0)87 354 6343 or
Aspiring entrepreneurs can enter
entrepreneurs and the building Selected business owners are participation and attendance, as the competition by completing an sakhile@ilembechamber.co.za.
required to participate in a ten-
of resilient businesses. well as the quality of the business
week entrepreneurial development application form available from Here’s to another year of
This year’s launch included the programme endorsed by the plan submitted. The Entrepreneur website at growth, innovation, and
release of a programme impact University of KwaZulu-Natal The programme is proudly www.theentrepreneur.net.za. opportunity! 

Ashaylan Naidoo, Natasha James, Kay Govender (ENGIE Peakers Operations), Nkosinathi Myataza (Airports Company South Africa/@King Shaka International Airport), Thabani Mdlalose
(Mandeni Local Municipality Mayor), Ntokozo Ntuli (Siza Water), Fanele Mazibuko (Enterprise iLembe), Pieter Naude (The North Coast Courier).

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