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FIC: Draft PCC121A re Beneficial Ownership and the application of Section 21B of FICA
- 19 June 2024
- Regulatory Compliance and Legislation
- South African Accounting Academy
This Draft PCC 121A is aimed at highlighting money laundering, terrorist financing and proliferation financing risks related to beneficial owners.
As part of establishing the ownership and control structure of the legal persons, trusts and partnerships in terms of section 21B(1) of the FIC Act, the accountable institution must determine all natural persons who own or have control over the entity. It is from understanding the structure that the accountable institution will be able to determine which natural persons it must identify as the beneficial owners in accordance with sections 21B(2), 21B(3) and 21B(4) of the FIC Act.
Reflecting comments received on a first draft published in December 2023, the document focuses on requirements under the General Laws (Anti-Money Laundering & Combating Terrorism Financing) Amendment Act, 2022, for determining the ownership and control of an accountable institution’s clients where such clients are legal (not natural) persons, trusts, partnerships or non-profit organisations.
The FIC has issued this public compliance communication for consultation and comments by accountable institutions in terms of section 42B of the Financial Intelligence Centre Act, 2001 (FIC Act/FICA). Once submissions have been received and considered, and the consultation process has been finalised, this public compliance communication will be issued in terms of section 4(c) of the FIC Act.
Related documents can be accessed via the following links:
- Website Notice https://www.fic.gov.za/2024/06/14/website-notice-guidance-on-beneficial-ownership/
- Notice calling for input https://www.fic.gov.za/wp-content/uploads/2024/06/2024.6-WN-Draft-PCC-121a-beneficial-ownership.pdf
- Summary of comments on first draft https://www.fic.gov.za/wp-content/uploads/2024/06/2024.6-Consultation-Feedback-Note-Draft-PCC-121A.pdf
Click here to download the Draft PCC:
https://www.fic.gov.za/wp-content/uploads/2024/06/Draft-PCC121A-Beneficial-Ownership.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- 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 Beneficial Ownership.
Relevance to Your Clients:
- Relevant companies and CCs should be aware of the latest publications and guidance issued by regulators, such as the FIC.