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FIC: Updated Draft PCC118A – Interpretation of Money or Value Transfer Services Providers
- 03 April 2025
- Regulatory Compliance and Legislation
- South African Accounting Academy
Summary:
The Financial Intelligence Centre (FIC) has published the updated draft public compliance communication (PCC) 118A, to provide guidance on the interpretation of item 19 of Schedule 1 to the Financial Intelligence Centre Act (FICA) regarding accountable institutions, namely, money or value transfer service providers (MVTS).
Article:
PCC 118A provides guidance on the registration, reporting and supervision of money value and transfer services (MVTS) providers, under item 19 to Schedule 1 of the Financial Intelligence Centre Act (FICA) that engage in cross-border activity and/or domestic business activity.
An MVTS provider includes both formal and informal types of persons and entities. Formal cross-border MVTS providers include, but is not limited to, authorised dealers in foreign exchange (such as banks), and authorised dealers in foreign exchange with limited authority. Informal MVTS providers include, but are not limited to, hawala dealers and cash aggregators.
All item 19 accountable institutions, regardless of whether they are formal or information MVTS providers, must register with the Centre. This must be done separately for each type of MVTS business activity they perform and conduct whether as a cross-border or domestic MVTS provider.
Draft PCC 118A was originally issued in response to the amended Schedule 1 to the FIC Act, as contained in Government Gazette 47596 which came into effect from 19 December 2022.
Draft PCC 118 was made available for a first round of consultation, from 15 December 2022 to 20 January 2023. All comments received at that time were considered and incorporated into the updated draft PCC 118A where appropriate.
This updated Draft PCC 118A is made available for a second round of consultation, and comments are invited by accountable institutions, supervisory bodies and all other persons by close of business on Friday, 25 April 2025.
Click here to download the 19-page updated Draft PCC document:
https://www.fic.gov.za/wp-content/uploads/2025/03/2025.3-PCC-PCC118A.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 money value and transfer services (MVTS).
Relevance to Your Clients:
- Relevant Accountable Institutions (companies and CCs) should be aware of the latest publications and guidance issued by regulators, such as the FIC.