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FIC: Directives on Risk and Compliance Returns
- 03 April 2023
- Accounting
- South African Accounting Academy
The directives were gazetted late on Sunday 2 April 2023 and backdated to 31 March 2023, when they came into force.
Each directive specifies the categories of accountable business, profession or institution to which it applies – referring to the FIC Act’s amended Schedule 1, which came into effect on 19 December 2022.
Directive 6 applies to accountable institutions that are designated financial businesses and professions and as listed in items 1, 2, 3 and 9 of Schedule 1 to the FIC Act. Accountants, who are regarded as accountable institutions as defined by the new Trust Property Control Act, are specifically included in item 2 of Schedule 1.
Directive 7 applies to accountable institutions that are listed in items 11, 14, 20, 21 and 22 of Schedule 1 to the FIC Act.
Click here to access the amended Schedule 1 - gazetted on 29 November 2022 https://www.fic.gov.za/Documents/GG%2047596%20-%2029%20Nov%202022%20(002).pdf
The completion of the risk and compliance return is compulsory for all accountable institutions specified in Directives 6 and 7.
Accountable institutions must answer all questions in the risk and compliance return questionnaire as specified in Annexure “A”.
Click here to download the FIC Directives:
- Directive 6 to designated non-financial businesses and professions https://18a66295-3a0f-41fb-a13d-9849edd3b2a3.usrfiles.com/ugd/18a662_47d4a420ed3646868bef430002449c28.pdf
- Directive 7 to specified institutions https://18a66295-3a0f-41fb-a13d-9849edd3b2a3.usrfiles.com/ugd/18a662_ac664fabafcd41e0bb8582e0e6431b3f.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, regulations and directives that are gazetted relating to FIC and accountable institutions, to ensure that your clients (or even your own practice) comply with their reporting obligations.
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, regulations and directives that are gazetted relating to FIC and accountable institutions, to ensure that they comply with their reporting obligations.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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https://cpd.accountingacademy.co.za.