FICA COMPLIANCE GUIDANCE NOTE IN TERMS OF THE OF THE FINANCIAL INTELLIGENCE CENTRE ACT (THE FIC ACT)
Businesses that do not develop and implement an effective risk management and compliance programme
(RMCP) are particularly vulnerable to financial crime, such as money laundering and terrorist financing.. This together with the regulatory risk of non compliance may result in fines and sanctions being imposed by the FSCA.
Section 42 of the Financial Intelligence Centre Act (FIC Act) sets out the requirement for accountable institutions to develop and implement an RMCP. The FIC Act requires accountable institutions to apply a risk-based approach as a preventive measure against money laundering (ML), terrorist financing (TF) and proliferation financing (PF).
The accountable institution (FSP) must be able to demonstrate through its RMCP, together with all other controls aimed at AML/CFT/CPF, that it has applied its mind to identifying and assessing the risks, and has developed and implemented controls aimed at monitoring, mitigating and managing that risk.
The purpose of this communication is to assist FSP’s in identifying the areas of FICA which may need attention, more importantly the evidence required in terms of the processes and procedures in demonstration compliance in terms of Fica Amendment Act.
Please feel free to contact us should you require any assistance our have questions with regards to the FICA compliance.
CRUX Compliance Practitioners
Risk and Compliance Management Programme [Themes To Be Addressed]
RBA methodology, risk tolerance, institutional risk assessment must be noted in detail
