We have recently started to receive requests from estate agencies for copies of our FICA documents for their purposes after the conclusion of a transaction.
POPIA prohibits us from providing copies of these documents to third parties, and even if we were to do so, this would not mean that the estate agency has complied with their FIC obligations.
There is a misconception by some, that FIC compliance entails the obtaining of a client’s ID document and proof of address. There is however so much more that needs to be complied with.
In order to assist you, and provide some guidance on how to comply with all your FIC obligations we have put together a simple table setting out what your obligations are, and a brief outline of what is required to comply. This is intended to be a practical “tool”.
I hope you find it useful.
| COMPLIANCE OBLIGATION | |
| 1 | Registration with the Centre by accountable and reporting institutions.
To do this go to www.fic.gov.za and select “Register or Report” on the righthand side of the website and follow the prompts. |
| 2 | Compliance Governance
You need to know who your Compliance Officer is going to be and that person needs a written authority which will be uploaded at the time of registration. |
| 3 | Risk Management and Compliance Programme (RMCP)
The EAAB has a RMCP template available for estate agents at https://www.eaab.org.za/article/risk_management_and_compliance_programme_template_ in_terms_of_the_financial_intelligence_centre_act_38_of_2001 |
| 4 | Compliance Training
Senior Management and those in authority must ensure compliance by management and staff with the provisions of the FIC Act and the estate agency’s RMCP. Compliance functions must be assigned to a person who has sufficient competence and seniority to ensure the effectiveness of compliance therewith. After training our staff we get an acknowledgement of the training received signed as proof of the training given. |
| 5 | Customer Due Diligence (CDD)
We do this by getting the client to complete a questionnaire to which an affidavit is attached confirming the information provided. If the business relationship persists for a continued period of time you should redo the CDD and also redo CDD if you suspect anything may have changed. If a client does not provide you with documents for you to carry out your CDD, you are not lawfully permitted to deal with them further. |
| 6 | Record Keeping
Your CDD documents are to be kept for a period of 5 years. |
| Reporting
There are 4 types of reports |
|
| (a) | – Cash Threshold Reporting (CTR)
Report all cash received from a client that adds up to R25 000.00 or more (Cash means notes paid into your account or handed to you. Not payments made by EFT) within 2 days of receipt. |
| (b) | – Terrorist Property Reporting (TPR)
Check that your client is not listed on the UN1267 list, and if he is, report him to the FIC within 5 days. This check can be done at https://www.fic.gov.za/International/sanctions/Pages/search.aspx Print the report and attach it to y our CDD documents. |
| (c) | – Suspicious Activity Reporting (SAR)
You are required to file a SAR within 15 days of your becoming suspicious of any entity. |
| (d) | – Suspicious Transaction Reporting (STR)
You are required to file a STR within 15 days of your becoming suspicious of a concluded transaction. |
NOTE:
- Your client is the person/entity who grants you the mandate. That is the only party you need to do CDD on.
- The CTR, SAR and STR obligations are in respect of both the seller and purchaser and lessor and lessee.
- If you hold money in Trust on behalf of a purchaser or lessee, then at that point they become your client and you need to do CDD in respect of them.
Article by Maria Davey