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WHY LOCATION JUST BECAME A KEY FICA

PRIORITY

GEOGRAPHIC TRANSPARENCY TAKES CENTRE STAGE IN FICA COMPLIANCE

Sameer Kumandan, is vital in a financial system should trigger additional checks.
Managing Director, increasingly shaped by cross- But without accurate and up-
SW360 and border activity, complex corporate to-date location information,
SearchWorks structures, and distributed institutions can miss unusual
operations. patterns that might indicate illicit
t the end of activity.
last year, the Location, location, location
In a recent interview with
AFinancial Geographic location plays a Moneyweb, acting director of the
Intelligence central role in how financial FIC, Pieter Smit, explained that
Centre (FIC) institutions assess risk, apply due
released draft diligence, and meet regulatory even after exiting the grey list
last year, it is essential for South
Directive 10 obligations under FICA. For Africa to continuously strengthen
for public example, some locations are seen the effectiveness of its AML/
comment. as riskier because it’s easier for
The directive emphasises stronger money to move across borders CFT frameworks. He stressed
that this must be an ongoing
geographic location disclosures without being noticed, there’s process, rather than a once-off fix.
by accountable institutions at the more organised crime, or According to Smit, the geographic branches and subsidiaries, this an accountable institution, you
point of registration. Under the governance and compliance rules process will be more complicated. can then investigate, update the
directive, accountable institutions aren’t enforced very well. In this location and the structure in But, once the records are updated, client’s risk rating, and file any
which accountable institutions
must share information about way, geographic location can be a operate can either increase it’s just a matter of maintaining required FIC reports. Should
their head offices, branches, critical risk signal. For instance, or decrease the risk of being and updating the information Directive 10 come into force, it
and subsidiaries, including the a small port town with limited should anything change in the might mean more paperwork
branches of their subsidiaries. customs checks might be more exploited by criminals, which is future. for accountable institutions, but
why it’s so important.
This relates to offices and branches vulnerable to money laundering Automated compliance tools it also makes it easier to detect,
located within or outside the than a big city with strict Where to from here? and applications, like VOCA assess, and act on risks before it’s
Republic of South Africa. financial regulations. FICA also Stakeholders are invited to from SW360, streamline FIC too late. 
While geographic location expects accountable institutions submit comments on Directive compliance in a clear, practical
has always been a foundational to understand their customers’ 10 by the close of business way. If, for example, you have a For more information contact
element of anti–money geographic footprint so that they on Friday, 13 February 2026. customer and all their checks T: + 27 (0)86 034 0000
laundering and counter-terrorist can apply appropriate levels of Should the directive come into are clear, but they suddenly start E: info@searchworks.co.za
W: www.searchworks.co.za
financing (AML/CFT), this recent customer due diligence. force, accountable institutions receiving large payments routed
directive from FIC highlights the Geographic data also affects must update their registration through banks in a jurisdiction
importance of transparency. At ongoing monitoring because details within 90 days of the flagged for weak AML controls,
the centre of the draft directive customers that operate across commencement date. This this activity warrants further
is a deceptively simple idea: borders require enhanced would mean gathering accurate investigation. Ongoing
regulators need a clearer view of scrutiny. If a business is location data for head offices and monitoring tools keep tabs on
where accountable institutions constantly moving money all branches and subsidiaries sanctions lists and Politically
operate and of how they are between countries with different across jurisdictions. Obviously, Exposed Persons (PEPs) and
geographically structured. This regulatory frameworks, this if a company has hundreds of will flag this unusual activity. As

DURBAN: A TOP TRAVEL DESTINATION

hen Time Out released So why should Durban be on as part of Durban’s irresistible Adventure and Natural Beauty ‘Beach and Safari’ resort, set
its Best Places to Travel your travel wishlist this year? charm. on Your Doorstep to open along the coast. This
Win 2026 list, it featured Durban isn’t just a beach town; innovative concept blends oceanic
the globe’s most exciting spots, Warm Water, Weather, and Whether you’re sipping a it’s a gateway to diverse landscapes bliss with safari adventure; the
from the Canadian Rockies’ Welcome cold drink on the sunlit Golden and experiences: perfect metaphor for what Durban
spa-centred wilderness to Rabat’s Durban’s sub-tropical climate Mile or catching waves at Dairy ■ Big 5 safari adventures await offers as a destination.
cultural renaissance and Brazil’s is the kind of place where Beach, the city’s seaside vibe
sun-soaked beach towns. Amid winter is a myth and summer is effortlessly relaxing and just a road trip away in places Friendly Locals
like Hluhluwe-iMfolozi and
these stunning global choices, feels eternal. The Indian Ocean deeply energising. iSimangaliso Wetland Park. Durban is consistently praised
Durban, South Africa’s coastal laps the golden sand beaches A Melting Pot of Culture and for its genuine warmth and
crown jewel, earned a well- with consistently balmy water, Cuisine ■ Drakensberg’s towering peaks hospitality. It’s the kind of place
deserved 14th place. That’s no making swimming, surfing, call hikers and nature lovers to where you’re just as likely to strike
small feat and it’s a sign that this and beach strolls a year-round Durban is where global paths that rival any in the world. up a conversation on the beach
vibrant city is finally stepping into delight. Something that Time flavours and local traditions mix ■ The Midlands Meander is a as you are in a café. Visitors often
the international spotlight. Out editor specifically highlight into something unforgettable. scenic route of art, craft, farms, leave feeling like they’ve had a real
Thanks to one of the largest and local produce that offers
Indian communities outside the a slow-travel experience that connection with the place and
subcontinent, Durban plates are connects deeply with the its people and that transforms a
rich with spice and soul from region’s roots. vacation into an experience.
mouth-watering curry to its iconic In a year where travellers are
bunny chow. You get both beach days and seeking experiences with heart and
wilderness thrills in one trip
Beyond food, the city is steeped and that’s rare among global depth, Durban ticks all the boxes
in history and culture. You can destinations. and more. It’s time the rest of the
explore Phoenix Settlement, world caught on to what South
where Mahatma Gandhi lived and New Experiences for 2026 Africans have long known: this
worked, or browse vibrant local art 2026 is shaping up to be city is magic. 
and markets that reflect the city’s Durban’s moment. One of the
rich African and Indian heritage. year’s most anticipated tourism Source https://www.timeout.com/travel/
additions is the new Club Med best-travel-destinations-2026

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