Page 13 - KZN Business Sense 10.1 Page One Shaaz Moosa - CEO Supahot- Ebook

BREAKING DOWN THE FIC ACT

A QUICK GUIDE FOR ACCOUNTABLE INSTITUTIONS

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

HISTORIC MILESTONE FOR DEFY

efy Appliances proudly Republic of South Africa and Appliances, stated, “This is
took part in a historic trade ministers from various a critical milestone for our
Devent, as His Excellency, countries, including Angola, company, and we are truly
President Ramaphosa, presided Botswana, Burundi, Egypt, proud of this moment. The
over the launch ceremony for eSwatini, Ethiopia, Kenya, Libya, launch of preferential trade
the start of preferential trade Mauritius, Namibia, Nigeria, under the AfCFTA opens up
under the African Continental Rwanda, Senegal, Tanzania, new horizons for Defy, allowing
Free Trade Area (AfCFTA) for and Tunisia, emphasised the us to contribute to economic
South African companies. The collaborative spirit of this growth and strengthen
significant occasion unfolded at groundbreaking initiative. partnerships across Africa.”
the Port of Durban, symbolising Defy Appliances sees the Defy Appliances looks forward
a pivotal moment in Defy AfCFTA as a gateway to to leveraging the opportunities
Appliances’ commitment to
growing the export market on the expanding export opportunities presented by the AfCFTA to
African continent. into Central Africa, East Africa, build lasting connections,
and West Africa. During the promote economic development,
The AfCFTA trade agreement ceremony, the company had and continue delivering
launch aligns seamlessly with the privilege of showcasing innovative home solutions to
Defy’s vision of expanding its its flagship product, the chest consumers throughout the
presence and market share in freezer, proudly manufactured African continent. 
the Sub-Saharan region. This in the Ladysmith refrigeration
milestone represents a crucial factory. These high-quality W: www.defy.co.za
step towards the progressive appliances have been
elimination of tariffs and non- successfully exported to Kenya
tariff barriers to trade in goods, and other key markets across
fostering cooperation on all the continent.
trade-related fronts.
Commenting on this historic
The ceremony, attended achievement, Mustafa Soylu,
Caption by cabinet ministers of the chief executive officer at Defy

12