Updated FIC guidance relating to terrorist property reporting (TPR) in terms of s 28A of the FIC Act

The Financial Intelligence Centre (FIC) has updated existing guidance relating to terrorist property reporting (TPR) in terms of s 28A of the Financial Intelligence Centre Act 38 of 2001 (FIC Act).

The updates in the draft Guidance Note 6A (GN 6A), which provides guidance to accountable institutions in meeting their reporting obligations in terms of the FIC Act, includes the inclusion and discussion of s 28(1)(c) regarding the financial sanctions reporting obligation.

It has been released for consultation in terms of section 42B of the FIC Act. Note that all additions to the previous Guidance Note 6 appear in [brackets] while deleted text has been underlined.

Accountable institutions and supervisory bodies are invited to provide comment on the draft GN 6A by no later than close of business on Friday, 15 February 2019.
Feedback on draft GN 6A can be emailed to the FIC at Consult@fic.gov.za

Background

Section 28A of the FIC Act requires an accountable institution, listed in Schedule 1 to the FIC Act, to file a report with the Centre if the accountable institution knows that it possesses or controls property linked to terrorism or to entities that are sanctioned pursuant to the provisions of the Protection of Constitutional Democracy against Terrorist and Related Activities Act 33 of 2004 (the POCDATARA Act), and/or a person or an entity identified pursuant to a UN resolution as contemplated in a notice referred to in s 26A(1) of the FIC Act.

Section 25 of the POCDATARA Act states that the President must give notice, by Proclamation in the Gazette, in respect of any entity that has been designated by the United Nations Security Council (the UNSC) in order to combat or prevent terrorist and related activities.

The above-mentioned conditions are met in respect of the sanction lists issued pursuant to the United Nations Security Council Resolution (UNSCR) 1267 (1999), and its successor resolutions. An up-to-date list can be accessed via this link on the United Nations website. These UNSC Resolutions are the only sanctions lists related to terrorist activities which are legally recognised within the Republic of South Africa.

The FIC is set to make available a list on its website, specifically under the category as mentioned in s 26A(1) of the FIC Act. This list is referred to as the Consolidated List and will be made available on the Centre’s website.

The Consolidated List as contemplated in s 26A(1) of the FIC Act, refers to persons or entities identified by the United Nations, that are involved in terrorist acts and/or are connected to the proliferation of weapons of mass destruction. These persons or entities are linked to country regimes which include Democratic People’s Republic of Korea (DPRK), Yemen, South Sudan, Libya and Lebanon, amongst others.

No person may enter into any transaction with persons or entities on the South African Consolidated List. Should the Accountable Institution identify that they have a client or a prospective client on this list, they would have a reporting obligation.