Anti-Money Laundering: new Installment 7: Virtual Assets

30 March 2022
Accounting
South African Accounting Academy

The publication is part of a series helping accountants enhance their understanding of how money laundering works, the risks they face, and what they can do to mitigate these risks and make a positive contribution to the public interest.

Installment 7 looks at the broad new class of assets that have emerged over the past decade known as virtual assets, including Bitcoin and NFTs (non-fungible tokens).

Anti-Money Laundering: The Basics is user-friendly, easily accessible, and is a resource for Small and Medium Practices (SMPs) and accountants less familiar with AML, while also providing guidance for those looking for a quick refresher or reference. Future installments will examine trends in money laundering and tools to fight back illegal activities.

Click here to download the IFAC publication:

https://www.ifac.org/system/files/publications/files/Anti-Money-Laundering-The-Basics-Installment-7-Virtual-Assets.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

FICA and POCA are both pieces of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant anti-money laundering laws and regulations (and reporting obligations), you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As an auditor and independent reviewer, you need to consider and assess the risks that arise from possible money laundering activities and operations. This means that you need to be alert to situations that are conducive to money laundering.
You need to assess whether the services that you provide to your clients might facilitate money laundering, and then act accordingly.
As an individual and/or entity, you also need to comply with anti-money laundering legislation in your workplace.

Relevance to Your clients:

An entity (company or close corporation) has a duty to comply with the relevant anti-money laundering laws and regulations, as well as certain reporting obligations in terms of FICA and POCA.

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https://accountingacademy.co.za/profession/monthly-legislation-update

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