Consumer Information

Author:  XENTURION (PTY) LTD
Current

SUSPICIOUS & UNUSUAL TRANSACTION GUIDE

The purpose of the Financial Intelligence Centre Act (“FICA”) is to combat money laundering activities by, amongst other things, establishing a Financial Intelligence Centre (“FIC”) and imposing certain duties on all persons carrying on a business or who is employed by a business.

Money laundering can be described as the performing of any act which may result in concealing the nature, source, location or movement of the proceeds of unlawful activities or any interest that anyone may have in such proceeds.

Section 29 of the FIC Act requires a person who carries on a business or is in charge of, or manages a business, or who is employed by a business, to report any suspicious and/or unusual transaction to the Financial Intelligence Centre in the prescribed method and within the prescribed timeframes.

This guidance document focuses on

  • duty to report suspicious or unusual transactions
  • recognising a suspicious and unusual transaction
  • reporting a suspicious and unusual transaction
  • protection of the person communicating the report
  • penalties associated with non-compliance

All employees must read and understand the duties that are required of them as well as the disciplinary measures that may be taken by the FSP in the event of non-compliance.

The Suspicious & Unusual Transaction Guide can be viewed here:suspicious transactions-2

Useful information regarding the reporting of suspicious or unusual transactions may be sourced from the FIC’s website: www.fic.gov.za

the FIC Act: