2. Where in the FIC Act is TFS discussed?
Section 26A, 26B and 26C, 28A(1)(c) and 29(1)(b)(vi) of the FIC Act.

3. What are my obligations in relation to TFS?
The acquisition, collection or use of the property of persons or an entity whose names appear in the TFS List is prohibited.  This includes the provision of financial services and products to those persons or entities.  In short this means that Accountable Institutions are not allowed to transact with a sanctioned person or entity or to process transactions for such a person or entity.  The status quo as at the time of the imposition of the sanction in relation to property or funds of the sanctioned person or entity must be maintained and no financial services may be provided to the person or entity.  The only exception to this general prohibition is in specific instances where the Minister of Finance has permitted certain financial services or dealings with property.

4. How do I submit a report in terms of TFS?
All reporting to the FIC must be done on the FIC online registration and reporting platform, L.  This is accessible by going to the FIC website.  In order to report, the entity who is required to submit the report, must first register on goAML. 

A TPR; S28A report is to be submitted in the instance that your client is listed on the TFS List. 
A STR or SAR, S29 report is to be submitted in the instance where there are suspicious transactions or activities that may be connected to a person on the list, but the entity cannot confirm this as a fact.

The indicator to be selected when reporting, is to specify under which sanctions regime you are reporting.

Information regarding how to register and report can be found at:

http://www.fic.gov.za/Compliance/Pages/Reporting.aspx
http://www.fic.gov.za/Compliance/Pages/Registration.aspx

5. Where do I find the list to search for a person or entity listed in terms of TFS?
The FIC publishes and maintains the TFS List on the FIC’s website.

This list will change from time to time, and it is your obligation to ensure that you make use of the most recent list.

This list is searchable on the FIC web site, and has the functionality to print the search results and search criteria. 

This list is also downloadable in Pdf, Excel and XML formats.

6. How do I determine if my client is in fact on the list?
An Accountable Institution is required to search for their clients against the lists provided.  There are several search criteria that can be used to assist in narrowing down the search results.  These include the following fields:

• Name
• Surname
• Date of Birth
• Nationality
• Identifying number
• Aliases

The Accountable Institution will be required to ensure that they complete as much information as possible in the search fields.

It is the responsibility of the Accountable Institution to review the search results and to make a determination as to the validity thereof.

7. How often should I screen my client against the TFS list?
Accountable institutions which are likely to come into contact with sanctioned persons or entities are able to screen clients and prospective clients against the relevant sanctions lists.  This should be done during the client-take-on process, as well as subsequently as and when the UNSC adopts new TFS measures or expand existing ones.

8. What is the difference between Section 28A and Section 26A of the FIC Act?
Section 28A refers to sanctions under the Provisions of section 25 of POCDATARA.

Section 26A, 26B and 26C of the FIC Act refer to sanctions under a resolution by the Security Council of the United Nations under Chapter VII of the Charter of the United Nations.

Both sections relate to a sanctions regime followed by South Africa.  Both require Accountable Institutions to review their clients against the applicable list, to freeze assets and to ensure not to proceed with a transaction.

9. What is the application process for expenses?
The FIC Act allows the Minister of Finance to permit a sanctioned person or entity to conduct financial services or deal with property affected by a sanction in order to allow such a person or entity access to certain basic living expenses and third-party contractual agreements. The permission of the Minister of Finance may contain the exact details of the types of expenses which may be met from the property that is affected by a sanction, the amounts of such expenses, the funds or property from which such expenses may be met and the conditions to the access to the relevant funds or property.

To apply for access to permitted financial services, complete the application form and provide the required documentation here.

10. Where can I subscribe to the latest updates of TFS?
This is an automated alert notification email that is sent to registered users advising them of an update to the TFS List.  The email will contain the change made to the list as an attachment.

To receive these alerts, you are to subscribe here.  This functionality is free.  To unsubscribe, do so here