FICA: The importance of continuous screening

FICA: The importance of continuous screening

• 10 January 2024
• Money Laundering
• South African Accounting Academy

Continuous screening is a crucial step in FICA compliance as an individual or entity’s circumstances may change, affecting the level of risk that they pose to your business.  

Continuous screening is the process of conducting background checks and/or monitoring records on current employees on a periodic or ongoing basis to stay informed about life changes that could create an increased risk for your organisation.

Screening is not only related to sanctions exposure but also to identify exposure to Foreign and Domestic Politically Exposed Persons or Prominent Influential Persons. This also informs the level of due diligence performed on the client.

The following is discussed in an article published by DocFox:

• Why is it important to screen?

• How often should you screen?

Click here to access the Article:

https://blog.docfox.co.za/why-is-it-important-to-do-continuous-screening?utm_medium=email&_hsmi=79358648&_hsenc=p2ANqtz-81O7YilXXJXyDz57vEhGjCchwx4SPKYUSG93-TQLsbSHXKuNSrY6bwlqyMqqerRjyo3x6aHRxK9Hwf42WKDLMD9aEtig&utm_content=79358648&utm_source=hs_email

Relevance to Auditors, Independent Reviewers & Accountants:

• The Financial Intelligence Centre Act (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.

• As an auditor and independent reviewer, you need to consider that you & your clients who are Accountable Institutions, should be aware of articles that guide the importance of continuous screening.

Relevance to Your Clients:

• Relevant entities (specifically accountable institutions) must comply with the FIC Act, otherwise they could be held liable.

• Accountable Institutions should be aware of articles that guide the importance of continuous screening.

0 COMMENTS

LEAVE A COMMENT