The Financial Action Task Force (FATF), of which South Africa is a member, has recommended that competent authorities or financial supervisors should take necessary legal or regulatory measures to prevent criminals or their associates from holding, or being the beneficial owner of, a significant or controlling interest, or holding a management function in, a financial institution.

Failure to comply with the FATF’s recommendation could result in South Africa being placed on the FATF grey list, which could have dire consequences for the country. 

To partially address the FATF’s recommendation, the FSCA is proposing the amendment of the exemption, thereby requiring compliance by FSPs, in respect of the following requirements of the Joint Standard: 

• Honesty and integrity;
• Procedures for assessing and attesting to, on an annual basis, the fitness and propriety of significant owners;
• Notifying the FSCA of significant ownership or potential significant ownership;
• Notifying the FSCA of non-compliance with the Joint standard, or a change in the fit and proper status of a significant owner. 

Interested parties may submit comments on the draft amendment in MS Word format to FSCA.RFDstandards@fsca.co.za on or before 29 August 2022. 

To read FSCA Communication 22 of 2022, click here. 

To read the draft Notice of Amendment of the Exemption, click here.  

To download the Comments Template in MS Word format, click here.  

Further information on the proposed amendment to the exemption can be obtained by e-mailing Hannelie Hattingh at Hannelie.hattingh@fsca.co.za.