Increase in FICA Cash threshold reporting amount

10 November 2022
Accounting
South African Accounting Academy

For more than a decade, financial institutions were required to report you to the authorities for any cash transaction of R25 000 or more.

That limit was just doubled – and a reference to a series of transactions yanked – in new regulations.

Now you'll have to deal in more than R49 999 in cash before a great deal of information about you has to go to the Financial Intelligence Centre.

After 14 November 2022, a report to the FIC must deliver details such as the date and location, as well as a host of information on the people involved, including their gender and occupation, the source of the funds, and details for their employer, on top of standard identifiers such as ID number and income tax number.

Institutions are required to provide that information "as soon as possible but not later", but within no more than three days of realising a big enough amount of cash has changed hands.

Click here to download the Notice:

https://www.gov.za/sites/default/files/gcis_document/202210/47302gon2638.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

ACT 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.
All accountable institutions and reporting institutions have to meet their reporting obligations in terms of the FIC Act, and Cash Threshold Reporting is part of this.

Relevance to Your clients:

An entity (company or close corporation) that meets the definition of an accountable institution has a duty to comply with the Financial Intelligence Centre Act, otherwise they could be held liable.
All accountable institutions and reporting institutions have to meet their reporting obligations in terms of the FIC Act, and Cash Threshold Reporting is part of this.

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