Draft amendments to ML and TF Control Regulations in terms of the FICA

Draft amendments to ML and TF Control Regulations in terms of the FICA

• 18 April 2024
• Regulatory Compliance and Legislation
• South African Accounting Academy

The original ML & TF Control Regulations became effective on 1 February 2023.

The proposed Draft Regulations:

1. prescribe a threshold amount that will trigger reporting under section 30 of the Act;
2. prescribe the information that must be included in a report on the conveyance of cash or bearer negotiable instruments; and
3. specify the person who is authorised by the Minister to receive a report under section 30 of the Act.

The draft regulations prescribe the threshold for Sec23F (cash conveyance into or out of RSA) reporting on Sec 30 to be R24 999.99 and the information to be included in the report and person authorised to receive the report.

Comments due no later than 19 April 2024.

Click here to download the Draft Regulations:

https://www.treasury.gov.za/public%20comments/MLandTF/Draft%20Money%20Laundering%20and%20Terror%20Control%20Regulations%20and%20Explanatory%20memo%20-%20April%202024.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Financial Intelligence Centre Act (FICA) is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, 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 amendments and regulations that are gazetted relating to FIC – specifically Money Laundering and Terrorism Financing Control Regulations.

Relevance to Your clients:

• Relevant entities (specifically accountable institutions) have a duty to comply with the FIC Act, otherwise they could be held liable.
• Relevant entities should be aware of amendments and regulations that are gazetted relating to FIC – specifically Money Laundering and Terrorism Financing Control Regulations.

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