Monitoring of administrative compliance with FIC Act obligations is done by the FIC and the various supervisory bodies that have oversight over particular business sectors. An accountable institution will be monitored for its compliance by the relevant supervisory body/bodies with authority over it, whereas the FIC takes responsibility for compliance by accountable institutions that do not have a supervisory body, and for reporting institutions.

 

Monitoring is done with regards to all compliance requirements. One common way to monitor compliance is through onsite inspections to test the levels of compliance, which may be carried out by a supervisory body or by the FIC, or jointly by both organisations.

 

If the FIC or a supervisory body finds that an accountable or reporting institution or any person with an obligation to comply with the FIC Act has not complied with the Act or with a directive issued in terms of the Act, an administrative sanction may be imposed. The sanction will generally be imposed by the supervisory body who has conducted the inspection. The administrative sanction may take a variety of forms – including, amongst others, a caution and/or restricting the business activities of the institution and/or a financial penalty of up to R10 million for a natural person or up to R50 million for a legal person per instance of non-compliance.

 

Before imposing an administrative sanction, the FIC or supervisory body must give the institution/person an opportunity to make representations. Once the administrative sanction has been imposed, the FIC or the supervisory body must notify the institution or person of the administrative sanction in writing. This notification should explain the nature of the sanction, why the sanction has been imposed and it should advise the recipient of the right to appeal against the decision. Appeals are decided on by an independent Appeal Board.

 

When an administrative sanction is issued, the FIC or the supervisory body must publicise this, unless there are certain compelling and substantial circumstances present or when an appeal is lodged.

 

Financial penalties imposed by the FIC or supervisory body are paid into the Criminal Assets Recovery Account. The money is used to provide financial assistance to law enforcement agencies or institutions that render assistance to victims of crime. The FIC publishes notices issued and general information on this page. Please click below for relevant section: