The Financial Intelligence Centre issues a stern reminder to designated non-financial entities – particularly legal practitioners and estate agents – to file their overdue risk and compliance returns.
Accountable institutions that did not pay the smaller fine or remediate their non-compliance now face harsher penalties.
The FIC’s latest annual report shows that out of 558 inspections conducted during the year, 269 specifically targeted the non-submission of risk and compliance returns.
The Financial Intelligence Centre sets out legal practitioners’ obligations under the FIC Act.
Non-compliant accountable institutions are hindering efforts to get South Africa off the grey list, says the Financial Intelligence Centre.
The response to the Centre’s appeal to submit the outstanding risk and compliance returns ‘is not good enough’.
The relevant accountable institutions must submit the RCRs to avoid additional scrutiny or administrative sanctions.
Non-submission of the RCR required by Directive 6 will prevent the Financial Intelligence Centre from demonstrating compliance with the FATF’s action plan.
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