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FICA non-compliance statistics & trends
- 10 January 2024
- Money Laundering
- South African Accounting Academy
The FIC produced 3424 intelligence reports – most of these related to money laundering, fraud, bribery and corruption,
A total of 946 FICA compliance inspections were conducted. The supervisory bodies issued 544 inspection reports, while the FIC issued 402 inspection reports during the financial year. 75% of the FIC inspections (302) focused on legal practitioners.
Only 21% of legal practitioners were compliant and required no further action, leaving a significant 79% of legal practitioners inspected classified as non-compliant.
Inspections revealed non-compliance in key areas:
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Conducting Customer Due Diligence
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Maintaining proper records of Customer Due Diligence
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Developing and implementing a Risk Management and Compliance Programme per section 42 of the FIC Act
Access the 2023 FIC Annual Report at https://www.fic.gov.za/wp-content/uploads/2023/10/2023.9-%E2%80%93-FIC-Annual-Report-2022-2023.pdf Refer to our Alert dated 15 November 2023
Click here to download the Media Release to the 2023 FIC Annual Report for some more detail and interesting facts:
https://www.fic.gov.za/wp-content/uploads/2023/10/Media-Release-FIC-annual-report-2022-23.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
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Accountable Institutions should stay up-to-date with the latest developments that affect professional accountants, money laundering and terrorism financing – specifically publications issued by the FIC.
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As an auditor, you should be aware of common trends relating to non-compliance of your clients – especially legal practitioners.
Relevance to Your Clients:
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Accountable Institutions should stay up-to-date with the latest developments that affect money laundering and terrorism financing – specifically publications issued by the FIC.
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Legal practitioners should take special note of the areas of non-compliance, to ensure that repeat instances do not occur.