COMPLIANCE; SCREENING OF EMPLOYEES

On 31 March 2023 the Financial Intelligence Centre [FIC] issued Directive 8 and Public Compliance Communication [PCC] 55 as guidance for Accountable Institutions.

Directive 8 requires Accountable Institutions to screen their employees periodically and prospective employees for Competence, Honesty & Integrity in a risk-based manner as well as scrutinize employee information against the Targeted Financial Sanctions [TFS] lists as a money Laundering,a Terrorist Financing and Proliferation Financing control. Directive 8 is supported by PCC 55.

Overview of Compliance Requirements:

Ø  An Accountable Institution must screen and scrutinise information concerning its prospective and current employees;

Ø  In both instances an Accountable Institution must keep a record of the outcome and, on request, make the record available to the FIC or a Supervisory Body which performs regulatory or supervisory functions over that Accountable Institution;

Ø  An Accountable Institution must provide for, and record, the manner in which screening for Competence, Honesty and Integrity, and scrutinising of employee information against targeted financial sanctions [TFS] lists, will be conducted.

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 FIC Directive 8 and PCC 55 REGSERV [Pty] Ltd, which is an FSCA approved Compliance Practice, compiled a Policy Document and Employee Questionnaire to facilitate with the compliance requirements.

Please contact us on our website “contact space” [www.regserv.co.za] or via email: service@regserv.co.za for a free copy of the above-mentioned Policy Document and Employee Questionnaire.

Visit our REGSERV website blog frequently for HELP offerings with the HOW regarding FIC, FSCA and related Compliance matters.