Recently, high value goods dealers were included on the list of entities that are accountable institutions and must therefore comply with FICA. But what does this mean for your business?
The Financial Intelligence Centre Act (FICA) provides for specific requirements that all accountable institutions must follow to ensure they know their clients to mitigate the risk of money laundering. This includes the requirements to develop, implement and maintain a Risk Management Compliance Programme (RMCP).
The duty to implement this programme will rest on the shoulders of management and the appointed compliance 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 high value goods dealers
• 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
