Archive | Compliance and Legislation


Fica verification: can accountable institutions ask for too much information?

The recent Supreme Court of Appeal (SCA) case of Nedbank Limited v Houtbosplaas (Pty) Ltd and Another raises interesting considerations for accountable institutions aiming to comply with their obligations under the Financial Intelligence Centre Act (Fica). We discuss the case in detail below, asking: Is there a danger in an accountable institution asking for more […]

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Inadequate money laundering risk management exposes businesses to criminal exploitation

Businesses that do not develop and implement an effective risk management and compliance programme (RMCP) are particularly vulnerable to financial crime, such as money laundering and terrorist financing. A Financial Action Task Force (FATF) assessment of South Africa’s system for anti-money laundering, countering the financing of terrorism and countering the financing of the proliferation of […]

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FSPs can’t simply debar representatives for any act of internal misconduct

The Financial Services Tribunal (FST) has drawn on the principles governing the fit and proper requirements for legal practitioners in setting aside the debarment of a bank’s representative on the grounds of dishonesty. The tribunal also found fault with the procedure followed by First National Bank (FNB) in that it did not address the representative’s […]

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Debarment reconsiderations following a pattern: Which client affidavit is true?

The Financial Services Tribunal (FST) has set aside and remitted the debarment of a Sanlam representative in a case that followed a pattern similar to many debarment reconsideration applications: a client produces an affidavit stating that he or she did not apply for a product but recants the allegations in a second affidavit. The tribunal […]

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FSCA, Ravensberg reach settlement on fine for Fica contraventions

The FSCA and Ravensberg Advisory and Consulting Services have reached an agreement in terms of which 65% of the penalty the Authority imposed on the Cape Town-based tax, advisory and consulting company will be suspended for three years. According to a media release, the FSCA fined Ravensberg R780 000 in February for contravening the following sections […]

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Tribunal recommends investigation of pension fund, its administrator and trustees

The Financial Services Tribunal (FST) has set aside decisions by both Liberty, the pension fund administrator, and the Pension Funds Adjudicator (PFA), and recommended that the FSCA should consider taking regulatory action against the fund, its trustees and the administrator. Background The applicant contested the quantum of the retirement benefit paid out to him. He […]

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MPs insist on due process for Fica amendments aimed at avoiding grey-listing

Parliament’s finance committees last week decided they will not rubber-stamp National Treasury’s proposed amendments to the Financial Intelligence Centre Act (Fica) that are designed to prevent South Africa from being placed on the Financial Action Task Force’s grey list. Grey-listing will have dire consequences for the country’s financial system and will create difficulties for businesses […]

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‘Fund member should lodge a complaint against his adviser, not the Adjudicator’

The Financial Services Tribunal (FST) has upheld a decision by the Pension Funds Adjudicator to dismiss a complaint against a Discovery preservation fund, saying the applicant’s complaint was, in fact, against his financial adviser. The applicant, “IK”, joined the Discovery Classic Pension Preserver Plan in 2014. More than R5.3 million was transferred from his previous […]

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Higher tax deductions for pensioners who receive income from more than one source

Many pensioners who received their retirement income from more than one source had lower tax deductions, based on the tables applicable to the individual incomes. This often resulted in tax shortfalls at the end of the year, resulting in unexpected tax obligations, as they were under the impression that the tax deducted by the various […]

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