The Financial Intelligence Centre Act, 2001 (Act 38 of 2001) (FIC Act) places certain obligations on accountable institutions and other persons to implement measures in relation to the asset freeze requirements of the United Nations Security Council (UNSC) resolutions and South African domestic implementation of targeted financial sanctions (TFS) against individuals and entities so designated.

TFS obligations in terms of the FIC Act include scrutinizing client information against TFS list to identify designated persons and entities directly or indirectly linked to clients, freezing property of designated persons and entities, filing terrorist property, and suspicious and unusual transaction reports with the Financial Intelligence Centre (Centre), as well as obligations regarding de-listing and unfreezing of individuals and entities no longer designated by UNSC resolutions.

Horizon Compliance had conducted a discussion with the Centre on client screening. It was confirmed that ALL PROSPECTIVE CLIENTS must be checked against the targeted financial sanctions list (TFS list,) as it is an offence to provide financial assistance to a designated person on the list. There might be no South Africans listed now, but the Centre mentioned that they are in no position to know what happens tomorrow, next week or a month from now. Furthermore, this list is international in scope, therefore there is a possibility that a FOREIGN CUSTOMER is listed on the Targeted Financial Sanctions list.

Please refer to FIC Public Compliance Communication 44A for more information.

For any assistance regarding the matters discussed above, please click HERE.

The Importance of Client Screening - Ensuring Your Compliance with the FIC Act