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.