Page 25 - Business Sense-11.4 - KZN Top Business Awards Supplement -EBOOK

ACTUAL COST OF NON-COMPLIANCE WITH FICA

Sameer Kumandan, financial or commercial benefit financial services provider was
Managing Director, from the non-compliance and penalised for failing to report
SearchWorks360 if there was any remedial action suspicious transactions on time.
taken once the issue was identified. These are the kinds of ‘basic’
n the past A business’s compliance history oversights that now carry serious
18 months, matters too. Institutions with prior consequences.
Iinstitutions contraventions or those seen as
across banking, repeat offenders can expect harsher Expect deeper scrutiny
legal, and sanctions, as can those found to The 2025 Budget Speech made it
financial have obstructed investigations or clear – financial crime enforcement
services have withheld key information. is being prioritised. National
faced steep Treasury has allocated more
penalties Sanctions range from a written funding for forensic investigations
for non- caution or public reprimand to a and compliance monitoring. The
compliance with the Financial remediation directive, restriction FIC and SARS are both sharpening
Intelligence Centre Act (FICA). or suspension of business activities, their tools, and accountability is
Capitec, Old Mutual, HSBC, and and administrative fines of up tightening across all sectors.
Standard Bank have all been to R10 million for individuals regulatory reporting, and detect risks before they become
sanctioned with fines ranging from and R50 million for companies. This comes at a time when South ensures POPIA-compliant data compliance failures.
R7.7 million to over R50 million. For more serious breaches – Africa is still navigating FATF handling. They also automate VOCA, powered by SearchWorks,
These are not outliers, they reflect particularly where there is an greylisting. That context matters – Know Your Customer (KYC)/ is an application designed to
a clear regulatory shift toward element of intent – criminal regulatory pressure is mounting, Know Your Business (KYB) streamline compliance processes
stricter enforcement. charges may be brought, with and institutions cannot afford to verification processes and can for accountable institutions in
potential fines of up to R100 treat FICA compliance as a box- generate suspicious transaction and
While much has been said about million or imprisonment for up ticking exercise. compliance reports as and when regulated industries. Backed by the
FICA’s obligations, less attention to 15 years. Senior managers, they are requested by regulators. largest data aggregation platform in
is paid to what happens when directors, and employees involved The pressure is industry-wide SA, VOCA offers unmatched access
businesses fall short. The penalties in the breach may be held The uptick in enforcement One of the big selling points of to official databases and provides
are not limited to financial personally liable. isn’t limited to large financial automating FICA compliance a range of automated compliance
institutions. Any accountable institutions. In recent months, law is ongoing monitoring. Often, a tools that enable businesses to
institution – whether in property, Common non-compliance issues firms, insurers, financial advisers, business will do their due diligence meet FICA and risk management
legal, crypto, or lending – is at risk and crypto platforms have all faced at the start of the relationship with requirements. All accountable
if compliance lapses occur. Most FICA penalties stem enforcement actions. FICA applies a client only for that client to do institutions must strengthen their
from recurring failures such something illicit and illegal down compliance posture so that they
How penalties are determined as inadequate or generic Risk across sectors, and smaller firms the line. Ongoing monitoring helps aren’t slapped with harsh penalties
are not immune. If you deal with
The type of punishment depends Management and Compliance money – you are accountable. accountable institutions to assess and to ensure that they avoid
Programmes (RMCPs), poor
on the severity of the violation. customer due diligence, incomplete and manage risks continuously, inadvertently getting involved in
Regulators apply a structured recordkeeping, failure to submit Avoiding penalties requires more during the onboarding process any illegal or illicit activities. 
framework that considers both reports like Cash Threshold than good intentions and throughout the business
mandatory and discretionary Reports, and insufficient training. Luckily for regulated entities, relationship. By tracking client For more information contact:
factors. These include the nature, These are not technicalities – they there are automated compliance profiles daily, accountable T: +27 (0)86 034 0000
duration, seriousness, and extent are central to the act and form the platforms available that make it organisations keep tabs on all E: info@searchworks.co.za
W: www.searchworks.co.za
of the contravention, as well basis of most enforcement actions. easier to prevent fraud, money transactions as they happen, and
as whether the conduct was laundering, and regulatory they are alerted of any changes that
intentional, reckless, or negligent. In one case, a legal firm was fined breaches. These tools reduce might indicate a compliance risk.
The regulator will also assess R7.7 million for not implementing manual oversight, simplify Unlike periodic reviews, ongoing
whether the entity gained any an RMCP or training its staff. A monitoring ensures businesses

THE COUNTDOWN BEGINS:

A NIGHT TO REVIVE, REFORM, REINVENT

ETHEKWINI

he Durban Chamber in the city’s economic and Whether you are a long-standing
of Commerce and developmental journey. member of the Durban Chamber
TIndustry NPC is proud The Annual Gala Dinner has or a new entrant into our vibrant
to announce the return business ecosystem, the Gala Dinner
of KwaZulu-Natal’s most long been the premier platform offers an unmatched opportunity to
anticipated business gala – the for business networking in be part of the conversations shaping
169th Annual Gala Dinner. KwaZulu-Natal, drawing together the future of our city and province.
This hallmark event promises between 800 and 1,000 influential It is a platform where ideas meet
to be bigger, bolder, and more voices from across the province impact, and where collaboration can
visionary than ever before, – from captains of industry spark meaningful change.
reflecting both the resilience and entrepreneurs to corporate
and ambition of eThekwini’s executives and senior government EVENT DETAILS:
business community. officials. It’s a night where insights Date: Wed 29 October 2025
are shared, partnerships are Venue: playTSOGO Globe,
This year, the Gala Dinner formed, and collective strategy Suncoast
carries a powerful and timely takes shape.
theme: “Revive, Reform, Reinvent Table (10 seats): R25,000
eThekwini.” It speaks not only to This year’s gathering is not Individual Seat: R2,500 (incl. vat)
the urgent challenges facing our just a celebration – it is a call to Seats are limited. Opportunities are
city but also to the extraordinary action. It is about reconnecting endless. Be part of the conversation
opportunities that lie ahead for with the city’s potential,
those ready to lead with purpose redefining the role of business shaping eThekwini’s future. 
and innovation. As we gather in driving inclusive growth, and For bookings or enquiries, please contact
to honour legacy and celebrate reimagining what eThekwini can Nomthandazo Dlamini on
leadership, this year’s event become when we work together T: +27 (0)31 335 1000
sets the tone for a new chapter with vision and intent. E: dlaminin@durbanchamber.co.za

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