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CompliNEWS   |   Financial Service Intelligence Watch Friday 16 November 2018

FSCA fines SATRIX managers R60,000 for contravening sections of the FIC Act

The Financial Sector Conduct Authority (FSCA) has issued an administrative sanction against Satrix Managers (Pty) Ltd.

The firm had contravened the following legislative provisions under the Financial Intelligence Centre Act 38 of 2001 (the FIC Act):

•  Section 43B(1) - Registration

Every accountable institution referred to in Schedule 1 and every reporting institution referred to in Schedule 3 must, within the prescribed period and in the prescribed manner, register with the Centre.

An accountable institution that fails to appoint the person referred to in section 43(b), is guilty of an offence, is deemed non-compliant and is subject to an administrative sanction.

•  Section 21(1)(a) - Failure to identify persons

An accountable institution that performs any act to give effect to a business relationship or single transaction in contravention of section 21(1) or (1A) is guilty of an offence, is deemed non-compliant and is subject to an administrative sanction.

•  Regulation 24(4) of the Regulations promulgated in terms of GN R1595 in GG 24176 of 20 December 2002 - Cash Threshold reporting

A report under section 28 of the Act must be sent to the Centre as soon as possible but not later than 2 days after a natural person or any of his or her employees, or any of the employees of officers of a legal person or other entity, has become aware of a fact of a cash transaction or series of cash transactions that has exceeded the prescribed limit.

Any person or institution which fails to send a report to the Centre within the period referred to in regulation 24 or 24A is non-compliant and is subject to an administrative sanction.

Copy of Annexure A - Administrative Sanction