VerifyNowWhat is FICA in South Africa?
A complete explanation of the Financial Intelligence Centre Act, who it applies to, and what compliance requires.
What is FICA?
FICA (Financial Intelligence Centre Act, Act 38 of 2001) is South African legislation designed to combat money laundering and terrorist financing. It requires accountable institutions to verify customer identity, conduct due diligence, keep records for at least 5 years, and report suspicious transactions to the Financial Intelligence Centre (FIC).
Source: FICA Act 38 of 2001
View FICA Compliance GuideFICA Definition
FICA stands for the Financial Intelligence Centre Act (Act 38 of 2001). It is South African legislation that establishes a framework to combat money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction.
The Act is administered by the Financial Intelligence Centre (FIC), which receives and analyzes reports of suspicious transactions from accountable institutions.
Key FICA Requirements
Customer Identification (Section 21)
Verify customer identity before establishing a business relationship using independent and reliable sources.
Record Keeping (Section 23)
Maintain CDD and transaction records for at least 5 years after the business relationship ends.
Suspicious Transaction Reports (Section 29)
Report suspected money laundering or terrorist financing to the FIC without delay.
Cash Threshold Reports (Section 28)
Report cash transactions over R24,999.99 to the FIC within 15 business days.
Who Must Comply with FICA?
Schedule 1 of FICA lists all accountable institutions that must comply:
- Banks and financial institutions
- Insurance companies
- Estate agents and property practitioners
- Attorneys and law firms
- Accountants and auditors
- Motor vehicle dealers
- Crypto asset service providers
- Gambling institutions
- Foreign exchange dealers
- Trust and company service providers
FICA Penalties
Non-compliance with FICA can result in significant penalties:
- R10 million- Maximum administrative penalty for natural persons (Section 51)
- R50 million- Maximum administrative penalty for legal persons (Section 52)
- Imprisonment- Criminal prosecution for serious violations
Source: FICA Act 38 of 2001, Sections 51-52
Frequently Asked Questions
What does FICA stand for?
FICA stands for Financial Intelligence Centre Act (Act 38 of 2001). It is South African legislation designed to combat money laundering and terrorist financing.
Who must comply with FICA?
Accountable institutions listed in Schedule 1 of FICA must comply, including banks, insurance companies, estate agents, attorneys, accountants, motor dealers, crypto asset service providers, and other financial service providers.
What are the penalties for FICA non-compliance?
Under FICA Sections 51-52, administrative penalties can reach R10 million for natural persons and R50 million for legal persons. Criminal prosecution can result in imprisonment.
What documents are required for FICA?
For individuals: valid ID document (SA ID, passport, or driver's license) and proof of address. For companies: registration documents, proof of business address, and director/shareholder information.
How long must FICA records be kept?
Under FICA Section 23, records must be retained for at least 5 years after the business relationship ends.
Related Resources
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