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FIC: Directive 3A and PCC 50A – IFTR obligation
- 04 April 2025
- Regulatory Compliance and Legislation
- South African Accounting Academy
Summary:
The Financial Intelligence Centre (FIC) has published Directive 3A and public compliance communication (PCC) 50A following public consultation, in terms of the Financial Intelligence Centre Act, 2001 (Act 38 of 2001).
Article:
Directive 3A and PCC 50A have been updated to include the International Funds Transfer Reports (IFTR) reporting obligation and applies to all accountable institutions that are required to file a report with the FIC.
Directive 3A provides for the process to be followed should a reporting failure occur or if defective reports are submitted.
PCC 50A is to be read with Directive 3A and expands on measures to mitigate the loss of intelligence data which occurs due to reporting failures and provides guidance on mitigating defective reports.
Draft Directive 3A and draft PCC 50A were made available for consultation, and comments by accountable institutions, supervisory bodies and all other persons. All comments received have been considered and addressed where necessary.
Download the updated documents here:
- PCC 50A (17 pages) https://www.fic.gov.za/wp-content/uploads/2025/03/2025.3-PCC-50A-Mitigation-of-loss-of-intelligence.pdf
- Directive 3A (3 pages) https://www.fic.gov.za/wp-content/uploads/2025/03/2025.3-DR-Directive-3A-IFTR-inclusion-.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- 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.
- Auditors, Independent Reviewers and Accountants should be aware of the latest publications and guidance issued by regulators, such as the FIC – to enable their assessment of accountable institutions’ compliance with FICA.
- When advising clients or performing this function on their behalf, practitioners should be aware of the finer details and specific guidance on failure to report to FIC.
- As an accountable, you also need to comply with FICA in your workplace.
Relevance to Your Clients:
- An entity (company or close corporation) has a duty to comply with the FICA, and accountable institutions should fulfil their reporting obligations, otherwise non-compliance could lead to financial sanctions.
- Relevant Accountable Institutions (companies and CCs) should be aware of the latest publications and guidance issued by regulators, such as the FIC.