South Africa

FIC warns agents over Risk and Compliance Return deadline

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Businessman working at desk with alarm clock in foreground

On 31 March 2023, the Financial Intelligence Centre (FIC) issued Directive 6 of 2023 obliging estate agents (and other affected accountable institutions listed in Schedule 1 of the FIC Act) to complete and submit their risk and compliance returns (RCRs) by 31 May 2023.

On 25 August 2023, the FIC issued an advisory in relation to the submission of RCRs, which served as a final demand to non-compliant institutions to submit the required RCR to the FIC.

Despite the final demand notice and numerous initiatives undertaken by the FIC, a large number of affected accountable institutions (including real estate agents) have still not yet submitted RCRs as required by Directive 6.

Non-compliance with Directive 6 negatively impacts the FIC's ability to address specific deficiencies in the Financial Action Task Force Action Plan for South Africa.

As a result, on 5 October 2023, the FIC issued a notice warning accountable institutions (such as estate agents) that had not yet submitted their RCRs to do so by 5pm on Friday 13 October 2023. Those that do not do so will be sanctioned with an administrative sanction (which may include a financial penalty) by the FIC.

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