FICA compliance warning: Low submission rates a cause for concern

On 04 March 2025, the Financial Intelligence Centre (“FIC”) issued a general request, instructing all Accountable Institutions to submit their Risk Management and Compliance Programmes (“RMCP”) by Wednesday, 12 March 2025. This deadline has now passed, yet compliance rates have been alarmingly low. As of 10 March 2025, only 4% of approximately 19 000 registered legal practitioners complied, while overall compliance across all Accountable Institutions was a mere 6%.

It remains uncertain if these figures have shown significant improvement since the deadline.

Why does this matter?

South Africa’s greylisting by the Financial Action Task Force (“FATF”) highlights the urgency and importance of improving compliance with the Financial Intelligence Centre Act (“FICA”). Greylisting signals that South Africa is under increased international scrutiny due to deficiencies in preventing money laundering, terrorist financing, and corruption. To restore international confidence, compliance with FICA is more critical than ever.

Understanding FICA requirements

FICA mandates that institutions such as attorneys, accountants, banks, real estate agents, gambling institutions, crypto-asset providers, and high-value goods dealers (referred to as “Accountable Institutions” in terms of the Act) adhere strictly to specific anti-financial crime measures. Central to this obligation is the creation, implementation, and submission of a Risk Management and Compliance Programme. An effective RMCP must detail processes for client identification and verification, ongoing customer due diligence, meticulous record-keeping, and regular staff training.

Additionally, institutions are required to identify and closely monitor Politically Exposed Persons (“PEPs”) – individuals holding influential public positions who pose higher risks for financial crime. Enhanced due diligence must be applied in interactions involving PEPs to mitigate increased exposure to corruption and money laundering.

The consequences of non-compliance

Non-compliance carries severe penalties, including fines of up to R50 million for institutions (R 10 million for natural persons) and imprisonment of up to 15 years for individuals found guilty of serious violations. Beyond financial penalties, institutions may face increased regulatory audits, intensified monitoring, and potentially devastating reputational damage. This heightened scrutiny can erode client trust and ultimately threaten business sustainability.

Duty to report and thresholds

Accountable institutions also have an ongoing duty to report suspicious or unusual transactions promptly. Currently, the threshold for reporting cash transactions is R49,999.99, and transactions meeting or exceeding this amount must be reported immediately to the FIC. The duty to report arises whenever an institution reasonably suspects a transaction could involve illicit activities or the financing of terrorism.

Immediate action recommended

Ackermann Attorneys strongly encourages all Accountable Institutions to urgently verify their RMCP submission status. If your institution has not yet submitted your RMCP, it is imperative to submit this immediately through the FIC's goAML platform. Institutions must regularly review the FIC’s communications to ensure continued compliance.

Ackermann Attorneys offers professional support and guidance to help Accountable Institutions meet their obligations, prepare robust RMCPs, and maintain ongoing compliance.

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