FSCA PROPOSES THE AMENDMENT OF THE EXEMPTION OF FSPs FROM THE JOINT STANDARD ON SIGNIFICANT OWNERS
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.