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Bowmans Update: FICA amendments may require changes to internal processes

6 June 2017
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FICA amendments may require changes to internal processes

Amendments to the Financial Intelligence Centre Act have now been signed into law, although the effective date on which they become operative has not yet been proclaimed.

Some of the key amendments include: 

  • The confirmation of a risk-based approach to customer due diligence which requires the identification and assessment of an institution’s money laundering and terrorism risks;
  • Additional due diligence requirements for legal persons, trusts and partnerships;
  • Ongoing due diligence and scrutiny of transactions during the course of a business relationship and not just at the inception of the relationship;
  • Additional obligations in relation to clients who hold prominent public or private sector positions; and
  • increased intervention powers by the FIC and provision for warrantless searches in specified instances.

Some of the amendments may require changes to internal business processes and operations. For more information, please contact Kirsten Kern, partner at Bowmans.