- Application Permitted Financial Services
- Manual to complete the Application Form for Permitted Financial Services
- Wrongfully Frozen Assets
Application for Permitted Financial Services and Third-Party Contractual Agreements
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 Permitted Financial Services. 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.
The Minister of Finance may also permit the provision of financial services or the dealing in affected property which are not related to providing for Permitted Financial Services, but which are necessary in the normal course of business e.g. allowing for the accrual of interest or other earnings or are necessary in order to avoid prejudice to third parties, e.g. contractual payments which predate the imposition of a sanction. As in the case of Permitted Financial Services, the permission of the Minister of Finance may contain the exact details of the services, payments etc. that are permitted and the conditions thereto.
The permission of the Minister of Finance is granted by means of written communication with the sanctioned person or entity. The Director of the Centre must give notice of the permission of the Minister of Finance to accountable institutions and others who may have an interest therein. This is done by means of publishing notices containing the permission of the Minister of Finance and the conditions thereto on the Centre's website.
Application for Permitted Financial Services and Third-Party Contractual Agreements
In terms of the Financial Intelligence Centre Act (Act No. 38 of 2001), the Minister of Finance may, in writing and on the conditions as he considers appropriate and in accordance with a resolution of the Security Council of the United Nations contemplated in a notice referred to in section 26A(1), permit a person to conduct financial services or deal with property referred to in section 26B in the circumstances referred to in subsection (2).
The Minister may permit the provision of financial services or the dealing with property if it is necessary to:
a. provide for Permitted Financial Services, including, at least—
i.foodstuffs;
ii.rent or mortgage;
iii.medicines or medical treatment;
iv.taxes;
v.insurance premiums;
vi.public utility charges;
vii.maintenance orders;
viii.reasonable professional fees, and
ix.reimbursement of expenses associated with the provision of legal services;
b. satisfy a judgment or arbitral award that was made before the date on which the person or entity was identified by the Security Council of the United Nations;
c.make a payment to a third party which is due under a contract, agreement or other obligation made before the date on which the person or entity was identified by the Security Council of the United Nations;
d.accrue interest or other earnings due on accounts holding property affected by a prohibition under section 26B;
e.make a payment due to a person or entity affected by a prohibition under section 26B by virtue of a contract, agreement or other obligation made before the date on which the person or entity was identified by the Security Council of the United Nations: Provided that the payment is not directly or indirectly being received by that person or entity.
The Minister may permit the provision of financial services or the dealing with property under subsection (1) on his or her own initiative or at the request of a person affected by a prohibition under section 26B.
Applications to use or deal with frozen assets, or to make assets available to designated persons or entities, must be made using the Permitted Financial Services and Dealing with Property Application Form. This form can be accessed here or downloaded and submitted to: TFSsupport@fic.gov.za.
Manual to complete the Application Form for Permitted Financial Expenses
Application Completion Guide
Applications to use or deal with frozen assets, or to make assets available to designated persons or entities, must be made using the Permitted Financial Expenses Application Form. This form can be completed and submitted online or downloaded here and submitted to: TFSsupport@fic.gov.za.
The following obligatory supporting documentation must accompany all applications:
A declaration by an affidavit declaring:
a) a copy of the applicant's identity document or passport;
b) the applicant's interest in the property;
c) all the applicant's assets and liabilities; and
d) that the applicant cannot meet the expenses out of property not subject to section 26B."
Application for Permitted Financial Expenses: Documents to Support Application
The following permitted financial expenses are allowed and must be accompanied by the indicated supporting documentation when submitting an Application Form for Permitted Financial Services and Third Party Contractual Agreements in terms of section 26C of the Financial Intelligence Centre Act (Act No. 38 of 2001):
1. In all instances when applying for permitted financial expenses, an application must be accompanied by:
1.1 a declaration that the applicant cannot meet the expenses out of property that is not subject to section 26B. Application must be accompanied by a sworn statement by applicant listing every item of household expenditure and a declaration that he/she is not able to meet expenses from other means. The purpose of supplying this supporting documentation is to determine on a case-by-case basis what other items to be considered 'Permitted Financial Services' if it does not fall under the categories of permitted financial expenses as described below.
- a full disclosure by the applicant of his/her interest in the property. This disclosure must take the form of an affidavit by applicant disclosing interest in property supported by evidence of interest.
- a sworn and full statement of all the applicant's assets and liabilities. Such a sworn statement by applicant must declare all assets and liabilities of the applicant.
Specific categories of permitted financial expenses that can be selected on the Application Form as provided for under section 26C of the FIC Act (Act No. 38 of 2001) include:
2. For an application of foodstuffs: An application must be accompanied by an affidavit by applicant indicating the number of dependents, other sources of income (i.e. spouse, donations, gifts). The computation of the amount will be on a case-by-case basis depending on number of dependents, other sources of funds, standard of living of applicant, etc.
3. For an application of rent/mortgage: An application must be accompanied by evidence of rental agreement/statement of account for a bond. If rental agreement is verbal, affidavit from lessor on amount of monthly rent.
4. For an application of medicine/medical treatment: An application must be accompanied by evidence of receipts of medication/prescription from doctor for chronic or other medication or an invoice from medical practitioner/hospital/clinic etc. for services.
5. For an application to pay taxes: An application must be accompanies by an invoice from SARS for income taxes owing.
6. For an application to pay insurance premiums: An application must be accompanies by an invoice from an insurance provider/(s) indicating monthly premiums.
7. For an application to pay public utility charges: An application must be accompanied by an invoice from a municipality/(ies) for electricity, rates, water and sanitation. Consideration for costs for public transportation and telephone on a case-by-case basis.
8. For an application for maintenance orders: An application must be accompanied by a copy of an order of court indicating amount of monthly maintenance.
9. For an application to pay reasonable professional fees (could include school/ tertiary fees): An application must be accompanied by invoices for services rendered. Consideration will be on a case-by-case basis to determine what services will be considered reasonable in the circumstances.
10. For an application to reimbursement of expenses associated with the provision of legal services: An application must be accompanied by an affidavit by applicant supported by evidence of computation of the taxed legal expenses comprising fees for senior and junior counsel and attorneys' fees, as may be applicable.
11. For an application to satisfy a judgment/arbitral award that was made before the person/entity is listed by the UNSC: An application must be accompanied by a copy of the judgment/arbitration award. The judgment/arbitration award must be on a date before the person is listed by the UNSC.
12. For an application for third-party payments for obligations through a contract or agreement made before the person/entity is listed by the UNSC: An application must be accompanied by a copy of a contract, agreement or other documents indicating financial obligation. The obligation must arise on a date before the person/entity is listed by the UNSC.
13. For an application for interest or other earnings due on accounts holding property affected by prohibition/(s) in terms of section 26B: An application must be accompanied by proof of ownership of property. Computation of amount will occur on a case-by-case basis.
14. For an application to make a payment due to a person/entity affected by a prohibition under section 26B through a contract or agreement made before the person/entity is listed by the UNSC provided the payment is not paid to the person/entity listed: An application must be accompanied by a copy of a contract, agreement or other documents indicating financial obligation. The obligation must arise on a date before the person/entity is listed by the UNSC.
Wrongly frozen assets
The responsibility to freeze an asset subject to targeted financial sanctions rests with the person or entity that holds the asset, for example the financial institution that holds the funds.
If you consider that an asset that you directly or indirectly own or control has been frozen in error, please contact the asset holder in the first instance. If, following contact with the asset holder, you continue to consider that the asset has been frozen in error, please contact:
The Director
Financial Intelligence Centre
Private Bag X177
Centurion
0046
South Africa
or e-mail TFSsupport@fic.gov.za providing:
- your full name and contact details;
- the details of the asset and asset holder, including details of your legal or other interest in the asset/property);
- your interest in the frozen asset/property
- details of your contact with the asset/property holder;
- the reasons for your belief that the asset has been frozen in error.