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Fica update

24 June 2004

After a meeting with the Money Laundering Council, Finance minister Trevor Manual granted banks a reprieve by staggering the deadline depending on their risk rating of clients in terms of which ever licensed bank has:

  • until July 31 to complete a risk-based framework,
  • until October 31 to identify all trusts and partnerships,
  • to report on high-risk clients by December 31,
  • to report on at least half of their medium risk clients by May 31 2005,
  • to report on all medium-risk clients by September 30 2005, and
  • to report on all low-risk clients by September 30, 2006.
Rand Afrikaans University academic and money-laundering expert Louis de Koker said failure by other "accountable institutions" such as lawyers, estate agents, brokers and casinos to fulfill these requirements by 30 June could result in the business relationship being frozen, because the parties would not be able to transact.

The Fica requirements have attracted a lot of interest and the following articles, with their summaries as published in the GhostDigest during the last year, should be of use:

Money Laundering
Gangsters, racketeers, shady characters and drug lords will find it increasingly difficult to engage in money laundering as the provisions of the Financial Intelligence Centre Act (FICA) 38 of 2001 come into operation this year.
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Notes on the Financial Intelligence Centre Act
Derryn Pearson of Cliffe Dekker Inc. looks at the implications of this act and the obligations it imposes on attorneys. She also touches on its applicability to conveyancing attorneys and the issue of attorney client confidentiality.
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Fica costs
The raft of new anti money-laundering legislation has put a heavy financial burden on attorneys, for which they may charge.
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FICA fees
The Property Law Standing Committee of the Law Societies of South Africa met on Thursday 4 September and amongst other things discussed the Financial Intelligence Centre Act.
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Fica series
Guidance has been sought by attorneys regarding the application of the Financial Intelligence Centre Act 38 of 2001 (Fica). To answer the need, Marelise van der Westhuizen has written a series of articles in De Rebus.
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Section 29 of Fica
Marelise van der Weshuizen delves into Interpreting s 29 and the obligation to report in this month's (April 2004) De Rebus.
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Fica - 'suspicion'
The second part of the series by Marelise van der Westhuizen in the May De Rebus in which she deals further with the obligation to report in terms of s 29 of Fica.
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Fica - attorney client privilege
In Attorneys, privilege and confidentiality in the June 2004 De Rebus, Marelise van der Westhuizen examines whether Fica obligations can be limited by the attorney client relationship.
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Fica reprieve
The Financial Intelligence Centre has given banks until the end of the week to apply for an extension to the June 30 deadline for verifying the identity of clients.
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Fica Guidelines - application thereof
A table describing what steps should be taken by an attorney verifying clients in order to meet the requirements of Fica.
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Full articles on BusinessDay and Business Report

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