The Financial Intelligence Centre (FIC) has finalised Directive 10 after considering industry submissions, narrowing its application from the draft published for comment in December and clarifying how the new geographic location requirements will operate in practice.
The directive requires specified accountable institutions to provide detailed information about the geographic locations from which they operate, including their head offices, branches, and subsidiaries, either when registering with the FIC or, for existing registrations, by updating their registration information.
According to the FIC, the information will give it a clearer picture of institutions’ geographic footprints, strengthening its risk-based supervision and providing insight when identifying heightened money laundering, terrorist financing, and proliferation financing risks.
The FIC has also published a seven-page consultation feedback note explaining how it dealt with submissions received from banks, financial services providers, crypto asset service providers, attorneys, casino industry associations, consultants, and other stakeholders.
Narrower application than originally proposed
One of the most notable changes is the directive’s scope.
Paragraph 4 of the draft directive published in December stated that it would apply to every accountable institution listed in Schedule 1 to the Financial Intelligence Centre Act (FICA). The final directive is considerably narrower. It applies only to the following accountable institutions:
- Item 1: Legal practitioners
- Item 2: Certain trust and company service providers
- Item 3: Estate agents
- Item 9: Gambling institutions
- Item 11: Credit providers (excluding banks, mutual banks, and co-operative bank credit providers)
- Item 14: The South African Postbank Limited
- Item 20: High-value goods dealers
- Item 21: The South African Mint Company (RF) (Pty) Ltd
- Item 22: Crypto asset service providers
In its consultation feedback, the FIC notes that banks argued they should be excluded because similar information is already submitted to the Prudential Authority. The Centre did not accept that this justified an exemption, saying the information is collected for different regulatory purposes. However, the final directive is confined to specified accountable institutions that are designated non-financial businesses and professions. The FIC indicated that a further directive may be implemented for the financial institutions sector.
Legal objections rejected
Several commentators questioned whether the FIC had the legal authority to introduce the requirements through a directive, arguing that it effectively amended the registration requirements contained in section 43B of FICA.
The FIC disagrees. It says Directive 10 does not amend the Act or the Money Laundering and Terrorist Financing Control Regulations but merely specifies the information that must accompany registration under section 43B and gives further effect to the existing registration provisions. It also rejects the argument that a different provision of the Act should have been used, maintaining that section 43A(1) provides the appropriate authority for issuing the directive.
The Centre reiterates this position later in the feedback note, stating that Directive 10 does not amend section 43B of FICA but creates an obligation for accountable institutions to provide information regarding their geographic locations.
Administrative burden acknowledged
Industry participants also warned that the directive would create a substantial administrative burden.
The FIC accepts there will be additional administrative work but says accountable institutions already hold the required information and will simply need to capture it on the registration and reporting platform. It says further guidance will explain how the information must be submitted.
The Centre also rejects suggestions that the directive creates a new reporting regime under FICA. It says the geographic information will be submitted through a dedicated category on the registration and reporting platform that will not affect existing reporting processes. However, the directive does introduce a new obligation to provide geographic location information through the platform.
Clarifying what counts as a branch
One of the more practical outcomes of the consultation is greater clarity on what constitutes a branch for purposes of the directive.
Commentators warned that the draft definition could require institutions to register thousands of locations, including technology offices, call centres, back-office processing hubs, and other operational facilities.
The FIC says this was not its intention. For the purposes of Directive 10, branches are physical premises where Schedule 1 products and services are provided directly, in person, to clients. The directive does not extend to data centres, automated teller machines, remote-working locations, or virtual platforms. Where an accountable institution operates primarily through a virtual platform but uses third-party agents to engage clients and provide products or services, the agent’s branches must be listed.
The Centre also clarifies that virtual businesses must disclose the head office from which they operate. The relevant contact person is the person carrying out the compliance function in terms of section 42A(2)(b) of FICA, with the feedback note indicating that this would be the compliance officer, assisted by the compliance function.
Practical requirements
The final directive requires affected accountable institutions to provide information about their head office, branches and subsidiaries, both within and outside South Africa. This includes names, business addresses, registration, or licence numbers where applicable, and the contact details of the person carrying out the compliance function.
The directive took effect on publication in Government Gazette No. 55097 of 31 July 2026. From that date, accountable institutions already registered with the FIC and covered by the directive have 90 days to update their registration with the required geographic location information. Thereafter, any changes to the required particulars must be updated with the FIC within 90 days. Institutions that fail to comply may be subject to administrative sanctions under FICA.
