Page 11 - Business Sense 11.1 (Virosha Pillay)- eBook

FICA COMPLIANCE:

WHY THE TIME FOR ACCOUNTABILITY IS NOW

Sameer Kumandan, it is also a strategic asset in a
Managing Director, business landscape where trust
SearchWorks and transparency are becoming
ever more important. In addition,
having the right compliance
hat do strategy and infrastructure in
Old place future-proofs businesses
WMutual against ever evolving regulatory
and HSBC demands. Tools like VOCA,
Johannesburg powered by SearchWorks,
have in streamline compliance processes
common? for accountable institutions.
No, it’s not
that they’re A verification, onboarding
both financial services providers and compliance application,
or that the pair are big players Similarly, Kunene Ramapala operational disruption and by the Financial Action Task VOCA simplifies compliance by
in South Africa’s financial Incorporated, a law firm, was potential loss in trust, which Force (FAFT) in February last automating customer due diligence
services landscape. Each of these penalised R7.7 million for gross can negatively affect established year. Being placed on FAFT’s processes and ensuring adherence
institutions has recently been negligence and multiple FICA business partnerships, can often grey list means that our country to FICA requirements. When
penalised for non-compliance compliance failures, including not be far worse than the financial has various shortcomings when compliance is automated, tasks
with the Financial Intelligence implementing an RMCP, failing implications. Even a small it comes to preventing money like ID verification and document
Centre Act (FICA). to scrutinise clients against the lapse in compliance can lead laundering, fraud and terrorist validation happen automatically,
in real-time, which streamlines
In September, the South African targeted financial sanctions (TFS) to devastating consequences. financing. At the time, the FAFT the onboarding process and
Reserve Bank (SARB) imposed list, and sharing login credentials This puts additional pressure on provided a breakdown of where reduces the risk of oversight.
sanctions on Old Mutual for on the goAML (Global Anti- all accountable institutions to we were falling short and gave us Furthermore, applications like
failing to meet customer due Money Laundering) system. This prioritise compliance, especially a strict deadline to address these VOCA are designed to have a deep
diligence (CDD) obligations, for case marked the first appeal of its given recent amendments, which 22 strategic deficiencies. And that understanding of local regulations,
not timeously reporting suspicious kind, where the FIC’s decision to have expanded the definition of deadline is looming. including the latest amendments to
and unusual transactions and enforce penalties was upheld by the what constitutes an ‘accountable At present, there are about six FICA so that businesses don’t have
for neglecting to adequately Appeal Board. institution’. The new definition outstanding items on the list that to stress about failing to update
develop and implement a Risk If anything, these sanctions now includes crypto-asset must be remedied before February their compliance strategies. And
Management and Compliance showcase the consequences of providers and high-value goods 2025. One of the outstanding when compliance is automated,
Programme (RMCP), among non-compliance and indicate dealers, among others. The action items, which should have manual efforts are reduced, which
other offences. Old Mutual faces a that the era of leniency is well and changes are intended to close gaps already been “ticked off”, was means that you have more time
penalty of R15.9 million for non- truly over. They also demonstrate in existing anti-money laundering delayed because of low compliance to focus on your core business
compliance. In October, SARB SARB’s commitment to upholding (AML) and counter-terrorist by companies and trusts; like activities. 
announced that HSBC had failed robust financial practices and financing (CFT) prevention the financial services brands
to comply with certain provisions preventing financial crime. FICA is measures and better align mentioned above.
of FICA and would be charged a not a suggestion – it’s the law and South Africa’s regulations with For more information contact:
financial penalty totalling R9.5 the law is coming for those who international standards. If we want to be removed T: +27 (0)86 034 0000
million. HSBC’s offences also fail to meet their obligations. from the grey list next year, E: info@searchworks.co.za
related to CDD and RMCP, as well Beyond greylisting all accountable institutions W: www.searchworks.co.za
as failing to attend to automated And let’s not forget that the These obligations have become must recognise their role in
transaction monitoring system cost of non-compliance extends even more critical, and there has safeguarding South Africa’s
(ATMS) alerts within the required far beyond penalties. The impact been greater regulatory scrutiny, financial system. Compliance
timeframe. of the reputational damage, since South Africa was greylisted is not only a legal requirement,

A WORLD BUILT ON MEMORY AND VISION

I have vision because Sense of dignity and pride people with vision, but just as starts with us, today. It begins with
my grandparents have I have attended several annual importantly, it needs older people embracing older adults, listening to
“memory.” general meetings with our residents with memory, memory that can be their stories, and integrating their

These profound words, at Tafta. One thing that struck me shared to inspire, teach, and guide. experiences into the foundation of
our vision for the future.
spoken by a young climate during these gatherings was the More than a network of buildings
justice activist from Samoa at deep sense of dignity and pride that Let us strive to cultivate spaces
Tafta is more than just a network
the Commonwealth Peoples many residents showed when they of buildings; it is a community where memory and vision
Forum, resonated deeply spoke of Tafta as their home. I often woven together by relationships, coexist, where younger people are
with me when my colleague heard the heartfelt words, “This is connections, and a sense of empowered to act with purpose,
recounted her experience at the my home, and I love it here,” and belonging. It is a place where safety knowing that the roots of their
event. They echo in my mind I began to think about what that and security are paired with stories aspirations are deeply embedded
as I reflect on the multifaceted truly means. These expressions and legacies. But why does this in the wisdom of those who came
world of care and support for reminded me of the powerful matter? Because every vision of before them. Get involved, seek
older persons, a realm that memory that older generations a better world is planted by those out the stories, build relationships,
holds the keys to connection, hold, memories of belonging, who carry the memory of the past, and together, we can create a
continuity, and community. pride of place, and a strong sense those who teach, nurture, and future that respects the past and
of community. Yet, I also thought inspires tomorrow. 
The context of these words inspire the younger generations to
was the pursuit of climate about the dangers posed by the dream bigger and act boldly.
justice, where the wisdom intergenerational disconnect that Imagine a world where future www.tafta.org.za
of the past meets the vision modernisation can bring. generations could look back and
for a sustainable future. This In this age of rapid change, say, “We have vision because
intergenerational bond is not where technology and evolving they had memory.” Imagine if
just important in the battle values sometimes pull us apart, it they could tell stories of how we
against climate change but is is more vital than ever to bridge created a world that respected
Femada Shamam, CEO, The essential in building resilient, the gap between youth and the and cherished all ages. This is not
Association for the Aged (Tafta) harmonious societies. elderly. The world needs young just an ideal but a possibility that

11