The Financial Action Task Force (FATF), of which South Africa is a member, has stated that: “Competent authorities or financial supervisors should take the 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…” 

The Financial Sector Conduct Authority (FSCA), therefore, wishes to scrutinise the ownership of its supervised entities more closely to help mitigate the risk of financial institutions being used to facilitate criminal activity.  

Accordingly, the FSCA is embarking on an information gathering exercise to help identify and verify the owners of certain financial institutions more effectively. 

The FSCA may conduct criminal background checks on individual owners based on the information provided.  

To read the FSCA’s Information Request, click here.  

Who must comply? 

Authorised Financial Services Providers (FSPs), excluding: 

• FSPs that are authorised for non-life insurance and/or health service benefit products only; and
• Sole proprietors and partnerships, as these businesses are not separate legal entities.

How must you comply? 

Option 1:  

• Access the FSCA’s online submission portal by clicking here.
• Enter the Key Individual’s existing login credentials.  
• Alternatively, the Key Individual can select ‘register’ or ‘forgot password’ and follow the prompts.  
• Once logged in, select the ‘Beneficial Ownership Information’ option at the bottom of the menu and click ‘submit’.  
• Complete all required fields. Direct ownership information must be captured on the first level, while beneficial ownership information must be captured on the second level.  
• A detailed organogram depicting the total ownership and control structure of the entity must be uploaded.  
• Once the information is validated on the FSCA Beneficial Ownership database, the entity will receive a confirmation e-mail.  

Option 2: 

• To import the beneficial ownership information, download the excel template by clicking here. 
• Capture the information as per the instructions on the Template. Save the Template once completed. 
• Select the ‘Import (Excel Template)’ option and upload the saved Template.  
• Ensure that all information on the Template is correct.  
• A detailed organogram depicting the total ownership and control structure of the entity must be uploaded. 
• The imported information will replace all records currently inserted into the FSCA Beneficial Ownership database. 

To read the FSCA’s detailed User Guide, click here.  

By when must you comply? 

All information must be submitted in the prescribed form and manner by no later than 30 September 2022.

What are the consequences of non-compliance? 

Failure to provide the specified information within the timeframe specified will constitute an offence under section 267 of the Financial Sector Regulation Act, 9 of 2017.  

A non-compliant entity may be liable for a fine not exceeding R1 000.00 for each day during which the offence continues. 

Enquiries regarding the RFI must be sent to the FSCA Business Centre at RFI@fsca.co.za.