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FIC Reminder: Registration and reporting requirement for banking sector in respect of international funds transfer reports
- 17 April 2025
- Regulatory Compliance and Legislation
- South African Accounting Academy
Summary:
Banks and mutual banks are reminded that they may only file regulatory reports on international funds transfers (IFTs) with the Financial Intelligence Centre (FIC) in terms of section 31 of the Financial Intelligence Centre Act, 2001 (Act 38 of 2001) (FIC Act), using the item 19 cross-border money value transfer services (MVTS) designation of Schedule 1 to the FIC Act.
Article:
The FIC has communicated this requirement consistently during the technical and testing phases of the development of the international funds transfer reports (IFTRs) system before the go-live on 1 February 2023. However, it is noted that certain banks and mutual banks are continuing to submit IFTRs to the FIC incorrectly, using their item 6 or Item 7 designations.
Banks and mutual banks that do not have yet an item 19 goAML organisational identity (Org ID) number are required to immediately register with the FIC as an Item 19 crossborder MVTS to enable them to submit IFTRs correctly on the FIC registration and reporting platform, goAML.
The FIC advises that goAML will reject IFTRs if submitted by banks and mutual banks using the Item 6 or Item 7 designation.
FIC has recently issued Guidance on the IFTR reporting obligation.
Click here to download the Website Notice:
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.
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.