Targeted financial sanction obligations of the FIC Law announced

The Financial Intelligence Center (FIC) ensures that all businesses listed as non-financial businesses and professions (DNFBP) under the FIC Act, targeted financial sanctions (TFS) liabilities.

DNFBPs include precious metal and stone dealers, high value good dealers, solicitors, certain property practitioners, trust and company service providers and gambling establishments.

TFS sanctions aim to prevent and suppress the financing of terrorism and the proliferation of weapons of mass destruction. These include:

• Review of customer information TFS list on the FIC website to identify designated individuals and organizations.
• Freezing of goods belonging to identified persons and organizations.
• Submitting terrorist ownership and suspicious and unusual transaction reports to the relevant authorities FIC.
• Keeping records of these activities.

How do you meet your business’s TFS obligations?

Review of customer information according to the TFS list

DNFBPs contain information about customers, TFS list during recruitment, while carrying out transactions. Customer information should also be reviewed without delay and, where necessary, TFS list updated.

In addition, FOBIMs must review information about their clients in accordance with Article 23 of the Law on the Protection of Constitutional Democracy. Terrorism and Related Activities Amendment (POCDATARA) Act court orders information. FIC will publish orders issued under section 23 of the POCDATARA Act on its website. website.

Customer’s information may include the person’s name, identification number, place of birth, address, date of birth, nationality, name of the organization and other information. Other information may include the country of residence in the case of a natural person.

Freezing the assets of a designated person and organization

If a DNFBP detects a designated person or entity, it must immediately cease all activities related to that person; this is called “freezing”.

If a potential customer, existing customer, beneficial owner, person acting on behalf of the customer, person on whose behalf the customer acts, or party to a customer transaction is identified in the TFS list, DNFBP must immediately freeze the property. belongs to the designated person.

Reporting terrorist possessions and suspicious and unusual transactions

In the event of a positive match to a TFS listing, DNFBP must immediately freeze and hold property associated with the designated person or entity. submit a terrorist possession report In terms of section 28A of the FIC Act. This should be done regardless of whether a transaction is completed or not.

Where further actions are attempted, DNFBP must report subsequent actions. DNFBPs must report without delay to any FIC activity or transactions suspected to be linked to a customer identified on the TFS list.

Risk management and compliance program

As part of their FIC Act compliance obligations, DNFBPs must develop and implement a risk management and compliance program (RMCP).

The RMCP provides how DNFBP will comply with its TFS obligations, including processes by which it will identify, assess, monitor, mitigate and manage financing risks related to terrorist financing and proliferation.

FIC published public compliance communication 44A and a TFS guide It sets out guidance on TFS obligations. For more information and guidance, Visit FIC’s website or contact the FIC’s compliance contact center on 012 641 6000 or logging online compliance query.

This article was supported by FIC.