From CompliNEWS

FIC fines eight accountable institutions for failure to comply with registration and/or reporting obligations under the FIC Act

The Financial Intelligence Centre (FIC) has imposed administrative sanctions against seven motor vehicle dealerships and a Kruger rand dealer for non-compliance with the requirements of the Financial Intelligence Centre Act 38 of 2001 (FIC Act).

The dealerships were sanctioned for failing to comply with registration and/or reporting obligations in terms of the FIC Act. Information on the dealerships and the administrative sanctions issued appears below.

1. Arnold Chatz Cars Constantia Kloof (Pty) Ltd t/a Arnold Chatz Cars Constantia Kloof
A reprimand for failing to register timeously. A financial penalty of R896 459,76 for failing to report and/or timeously

report 38 transactions exceeding the threshold of R24 999,99. A caution not to repeat the non-compliant conduct.

2. Rifle Range Car Sales (Pty) Ltd

A financial penalty of R661 481 for failing to report and/or timeously report 76 transactions exceeding the threshold of R24 999,99. A directive to remediate the outstanding unreported transactions. A caution not to repeat the non-compliant conduct.

3. Gold Reef Motors (Pty) Ltd t/a Halfway Toyota Howick

A financial penalty of R1 203 572 for failing to report and/or timeously report 60 transactions exceeding the threshold of R24 999,99. A directive to deactivate its additional reporting profile. A directive to remediate the outstanding unreported transactions. A caution not to repeat the non-compliant conduct.

4. Henque 1014 CC t/a Weirs Toyota

A reprimand for failing to register timeously. A financial penalty of R412 095 for failing to report 52 transactions exceeding the threshold of R24 999,99. A directive to remediate the outstanding unreported transactions. A caution not to repeat the non-compliant conduct.

5. KIA Motors South Africa (Pty) Ltd t/a KIA Roodepoort

A reprimand for failing to timeously register. A financial penalty of R357 383 for failing to report and/or timeously report 27 transactions exceeding the threshold of R24 999,99. A financial penalty of R17 745 for failing to timeously report one suspicious and unusual transaction. A directive to remediate the outstanding unreported transactions. A caution not to repeat the conduct that resulted in non-compliance.

6. Maher Motors (Pty) Ltd t/a Paul Maher Ford

A reprimand for failing to timeously register. A financial penalty of R934 755 for failing to report and/or timeously report 46 transactions exceeding the threshold of R24 999.99. A directive to remediate the outstanding unreported transactions. A caution not to repeat the conduct that resulted in non-compliance.

7. Blue Water Investments CC t/a Jackson Motor City

A reprimand for failing to timeously register. A reprimand for failing to comply with Directive 02/2014. A financial penalty of R503 443 for failing to report and/or timeously report 38 transactions exceeding the threshold of R24 999.99. A caution not to repeat the conduct that resulted in non-compliance.

8. Randburg Coin CC

A financial penalty of R7 520 831 for failing to report 212 transactions exceeding the threshold of R24 999.99. A caution not to repeat the conduct that resulted in non-compliance.

Administrative sanctions imposed by the FIC can include:

  • A caution not to repeat the conduct that resulted in non-compliance.
  • A reprimand.
  • A directive to take remedial action.
  • A restriction or suspension of certain business activities.
  • A financial penalty of up to R10 million in the case of a natural person and R50 million in the case of a legal person.

You can read the full FIC release here