In terms of the Financial Intelligence Centre Act (FICA) your firm might be regarded as an Accountable Institution and will be required to implement certain control measures to prevent and mitigate money laundering.
All firms will be required to develop, implement and maintain a Risk Management Compliance Programme (RMCP).
The duty to implement this programme will rest on the shoulders of the partners and the appointed compliance/reporting officer of the firm.
The purpose of this session is to discuss the requirements of the FIC Act and explain all the requirements of a RMCP.
• Definition of money laundering
• How does money laundering effect the accounting profession
o Specific reference to services provided
• What constitutes a money laundering offence i.r.o. POCA
• Outline of FICA sections
• Duties of accountable institutions
o Risk Management and compliance program (RMCP)
Implementing a Risk Based Approach
Different services provided and their risks
Risk assessment rating for each category
o Customer due diligence procedures for natural persons, legal persons, partnerships and trusts
Identifying the beneficial owners of legal entities and trusts and the new reporting requirement
o Scrutinizing clients against the UNCS and Targeted Financial Sanctions Lists
(TFS)
o Freezing of assets and implementing financial sanctions when applicable
o Dealing with Domestic and Foreign Politically Exposed Persons (DPEP and
FPEP)
o Reporting to the FIC and sharing information
Suspicious transaction reporting
Cash transaction reporting
Reports on Terrorist activity (POCDATARA)
o Appointment and duties of the compliance/reporting officer
o Training requirements for all employees
o Screening of employees
• Reports on bribery, extortion or fraud (PRECCA)
• Enforcement
• Non-compliance and penalties
• Reporting requirements when performing an audit, independent review or tax
services. What will you report and who will you report to
o Suspicious transaction to FIC
o RI to IRBA
o RI to CIPC
• How will confidentiality and client privilege affect your reporting
responsibilities?