OBLIGATIONS OF LEGAL PRACTITIONERS UNDER THE FIC ACT
On 19 December 2022 amendments to Schedule 1, 2, & 3 of the FIC Act came into effect.
One of the amendments impacts Legal Practitioners. “A person who is admitted and enrolled to practice as a Legal Practitioner as contemplated in section 24(1) of the Legal Practice Act, 2014 (Act 28 of 2014) and who is-
(i). an attorney (including conveyancer or notary) practicing for his or her own account as contemplated in section 34(5)(a) of the Act; or
(ii). an advocate contemplated in section 34(7) of the Legal Practice Act, 2014
is now included in Schedule 1: List of Accountable Institutions, of the Financial Sector Intelligence Centre (FIC) Act (Act No. 38 of 2001).
As a “new item” in Schedule 1 Legal Practitioners are now required to register with the FIC as Accountable Institution – deadline was 21 March 2023.
Furthermore, Legal Practitioners must now ensure that they fulfil their FIC Act obligations such as:
Ø Risk based approach and Risk Management and Compliance Programme (RMCP);
Ø Monitoring and Reporting STR (Suspicious and Unusual Transaction Report), CTR (Cash Threshold Report), TPR (Terrorist Property Report), IFTR (International Funds Transfer Report) (where required);
Ø Customer Due Diligence;
Ø Targeted Financial Sanctions;
Ø Foreign Politically Exposed Persons, Domestic Politically Exposed Persons, Prominent Influential Persons;
Ø Appointment of a Compliance Officer;
Ø Training & Assessment of Employees on the FIC Act and RMCP;
Ø Completing and submit the Directive 6 questionnaire- deadline was 31 May 2023;
Ø Conducting Employee Screening as per Directive 8.
As we all know the Regulators issue requirements on WHAT Accountable Institutions need to comply with, but guidelines on HOW to do it is normally limited.
Based on the above-mentioned amendments to the FIC Act, REGSERV [Pty] Ltd, which is an FSCA [Financial Sector Conduct Authority] approved Compliance Practice, compiled a range of Policy documents and Work documents to facilitate with the compliance requirements in this regard.
Please contact us on our website “contact space” [www.regserv.co.za] or via email: service@regserv.co.za for a free consultation on HOW REGSERV can HELP to be and stay compliant.
Visit our REGSERV website blog frequently for HELP offerings with the HOW regarding FIC, FSCA and related Compliance matters.