FIC Slams “Willful Non-Compliance"&nbsp; On the 23rd of July, the FIC issued a scathing media release criticizing various South African business sectors that retain high levels of non-compliance. &nbsp;This non-compliance relates specifically to the submissions of Risk and Compliance Return (RCR) forms, which are now a legal requirement for businesses to be FICA compliant.&nbsp;The RCR is a digital form created by the FIC. By filling it out, your company demonstrates that it understands money laundering risks and is acting in accordance with its Risk Management and Compliance Program (RMCP). &nbsp;The RCR digital forms for Directive 6 and Directive 7 can be found and completed on the FIC’s website <a href="https://www.fic.gov.za/2023/11/02/rcr/#:~:text=Directives%206%20and%207%20require,can%20lead%20to%20administrative%20action." target="_blank">here</a>. &nbsp;The deadline for the submission of the Directive 6 RCR was the 31st of May 2024. According to the FIC, the average RCR submission for Directive 6 sits at a disappointing 63%.&nbsp;Sector-specific RCR submissions for Directive 6 are: &nbsp;<ul><li>Legal Practitioners: 60% &nbsp;</li><li>Estate Agents: 66%&nbsp;</li><li>Trust Service Providers: 74% &nbsp;</li><li>Company Service Providers: 76% &nbsp;</li><li>Casinos: 100% &nbsp;</li></ul>Aside from casinos, the low rates of RCR submission has led to the FIC to criticize...&nbsp;<blockquote>“Business sectors willfully standing in the way of South Africa exiting the greylist”&nbsp;</blockquote>It is paramount that all business sectors ensure their full compliance with FICA. Without widespread compliance, South Africa cannot get itself removed from the FATF’s greylist and South Africa’s economy will continue to be strangled by international regulations and red tape. &nbsp;<h2>FIC Threatens to Issue Fines and Legal Sanctions &nbsp;</h2>With the deadline for Directive 6 compliance over two months ago, the FIC said it will begin issuing fines and sanctions on non-compliant businesses.&nbsp;<blockquote>“Institutions that have still not submitted their RCRs, are considered delinquent institutions and are automatically deemed to be at high risk of being used for money laundering and terrorist financing purposes. These institutions now face targeted inspections or targeted sanctions for their non-compliance.” - Christopher Malan, Executive Manager for Non-Compliance and Prevention.&nbsp;</blockquote>As stipulated by FICA, fines for non-compliance can be in the millions of Rands, while serious cases of non-compliance can be punished with prison sentences for accountable individuals. &nbsp;All South African businesses are therefore urged to submit their RCR and ensure their FICA compliance.&nbsp;To read the full media release by the FIC, click <a href="https://www.fic.gov.za/wp-content/uploads/2024/07/Media-Release-RCR-update-23-July-2024.pdf" target="_blank">here</a>.<h2>FICA Compliance Solutions for South Africa &nbsp;</h2>We offer a comprehensive range of due diligence solutions so that your business can ensure its FICA compliance. &nbsp;For basic FICA compliance, we provide market-leading solutions like FICA Express that verify customer identities and conduct AML Risk Screening. For larger and more complex FICA compliance demands, we offer a comprehensive range of over 45 services that can be tailored to your exact needs and provided via API.&nbsp;To explore how our full range of services can empower your business to ensure its FICA compliance, simply schedule a demo <a href="https://thisisme.com/contact-us" target="_blank">here</a>.&nbsp;

The Financial Intelligence Centre (FIC) has slammed several South African business sectors for failing to comply with FICA and says that fines are soon to follow.