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FIC continues to clamp down on motor dealerships

The Financial Intelligence Centre (FIC) continues to clamp down on motor vehicle dealers that don’t comply with the Financial Intelligence Centre Act.

Earlier this month, the FIC imposed fines of almost R5 million on seven motor dealerships, and this week the centre announced it has sanctioned two more dealerships:

  • Atlantis Motors (Pty) Ltd was fined R672 526 for failing to report 57 transactions exceeding the cash reporting threshold of R24 999.99.
  • ACS Pre-Owned (Pty) Ltd was fined R255 575 for failing to report 21 transactions exceeding the threshold.

Both dealerships were also reprimanded for failing to register timeously with the FIC and directed to report the unreported transactions.

The centre may impose a maximum penalty of R10 million on a natural person and R50m on a legal person.

The FIC said the sanctions imposed on non-compliant institutions does not imply that they facilitated money laundering or terrorism-funding transactions.

Moonstone Compliance’s services include Fica compliance, risk management and awareness training. Contact them today at support@moonstonecompliance.co.za to ensure your business doesn’t fall foul of the FIC.

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One Response to FIC continues to clamp down on motor dealerships

  1. Dewdat 31 March 2022 at 5:03 pm #

    An Advisory. Non declaration of Rent Income and Taxable Fringe Benfits
    Case File. An unknown party informed Sars that a Tax Payer owned three flats.
    Sars will estimate the rent income, say R60k pa and raise tax at say 20% ie R12000.00
    The penalty will be 100% of the additional tax ie R12000.00
    Add interest at 10% pa R 1200.00
    Total for one year R25200.00
    And for say 3 years R75600.00
    And say for three flats R226800.00

    Many advisors attend to filing tax returns. The risk is high,

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