FSCA IMPOSES ADMINISTRATIVE SANCTIONS FOR NON-COMPLIANCE WITH THE FIC ACT
The Financial Sector Conduct Authority (FSCA) has, in its capacity as a supervisory body in terms of the Financial Intelligence Centre Act, 38 of 2001 (the FIC Act), imposed a number of administrative sanctions on FSPs who did not comply with the FIC Act.
These administrative sanctions were for, amongst other things, failure to develop, document, maintain and implement a Risk Management and Compliance Programme (RMCP); failure to adopt and implement procedures to identify clients in accordance with a risk-based approach; failure to provide for processes for enhanced due diligence, where necessary; failure by senior management to formally adopt the RMCP; failure to update the FSPs details via the GoAML system; sharing of GoAML login credentials.
Considering the increased focus on FIC Act compliance by the FSCA, we urge our clients to ensure that they have an updated, customized RMCP that has been formally adopted by the Board of Directors/senior management and additionally, that the RMCP has been formally implemented in terms of the FSPs procedures to identify its clients in accordance with their risk-based approach.
Feel free to contact your ICS compliance officer for more information.
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