The Financial Sector Conduct Authority (FSCA) has imposed administrative sanctions of R4 900 000.00 and R6 300 000.00 on two respective entities for non-compliance with certain provisions of the Financial Intelligence Centre Act, 38 of 2001, as amended (the FIC Act).

Following an inspection, the FSCA identified weaknesses in the anti-money laundering / counter terrorist financing controls of the entities, including:

• Failure to comply with cash threshold reporting requirements (section 28);
• Failure to identify, verify and risk rate a beneficiary as part of the additional due diligence required in respect of legal persons, trusts and partnerships (section 21B);
• Failure to risk rate clients in line with the entity’s Risk Management and Compliance Programme (section 21).