FIC: Draft Directive 3A and draft PCC 50A

FIC: Draft Directive 3A and draft PCC 50A

• 19 March 2025
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

The Financial Intelligence Centre (FIC) has published draft Directive 3A on Notification of failure to report and draft Public Compliance Communication (PCC) 50A on Measures for mitigation of loss of intelligence data due to reporting failures for public consultation.

Article:

Draft Directive 3A and draft PCC 50A have been updated to include the international funds transfer reports (IFTR) reporting obligation.

Each of these draft documents applies to all accountable institutions who are required to file a report with the FIC.

Draft Directive 3A provides for the process to be followed should a reporting failure occur or if defective reports are submitted.

• Where a person or institution becomes aware of a reporting failure to the FIC, such person or institution has to mitigate the loss of intelligence data to the FIC in the manner set out in the draft Directive.
• Effective from 14 March 2025

Draft PCC 50A (to be read with draft Directive 3A) expands on measures to mitigate the loss of intelligence data which occurs because of reporting failures and provides guidance on mitigating defective reports.

• This PCC consists of two parts namely:
  • PART A: Non-submitted report
  • PART B: Defective report
• This PCC guides reporters on certain measures required for the mitigation of lost intelligence data due to the FIC, where a report ought to have been filed and the reporter fails to file the report, or where a reporter files a defective report.
• In both these instances the reporter is required to remediate the reporting failure as soon as possible. The goal of remediation is to file a non-submitted report and correct a defectively filed report without delay [within the soonest possible time], to limit any further negative impact due to the loss of intelligence data to the Centre.
• A defective report includes a rejected report owing to validation failures or where the data submitted in the report is inaccurate or false.
• In addition, this PCC guides reporters on measures aimed at preventing, remediating, and mitigating reporting failures, and elaborates on the Directive 3A of 2025 process to be followed when applicable.
• The remediation of reporting failures, as detailed in this PCC, does not amount to nor lead to condonation of any act of non-compliance of reporting obligations in terms of the Financial Intelligence Centre Act,2001 (FICA). Enforcement action may be taken by the Centre, or the appropriate supervisory body, as a result of non-compliance with reporting obligations

Comments are due by 21 March 2025.

The website notice can be accessed at https://www.fic.gov.za/wp-content/uploads/2025/03/2025.3-WN-Website-Notice-Directive-3A-and-PCC-50A.pdf

Click here to download the Draft documents:

• Draft Directive (3 pages) 3A https://www.fic.gov.za/wp-content/uploads/2025/03/2025.3-DR-directive-3A.pdf
• Draft PCC 50A (17 pages) https://www.fic.gov.za/wp-content/uploads/2025/03/2025.3-PCC-Mitigation-of-loss-of-intelligence.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.

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