Accountable Institutions Under FICA: Complete List and Compliance Obligations

The Financial Intelligence Centre Act (FICA), as amended, aims to combat financial crimes such as money laundering, terrorist and proliferation financing. As part of this, it places compliance obligations on certain businesses known as Accountable Institutions (AIs).

If you’ve heard about FICA but aren’t sure whether it applies to your business, you’re not alone. Many South African business owners / controllers are unsure whether their business and its operations is considered an accountable institution and what compliance involves.

So, is your business an accountable institution? And if so, what do you need to do? Let’s break it down.

What is an Accountable Institution?

An accountable institution is a person or organisation listed in Schedule 1 of the FIC Act. These institutions operate in sectors that are considered more susceptible to abuse in financial crime schemes and therefore have compliance obligations under FICA.

The accountable institutions identified in Schedule 1 of the FIC Act include:

• Legal practitioners
• Trust and company service providers
• Estate agents
• Authorised users of an exchange
• Collective investment scheme managers
• Banks
• Mutual banks
• Co-operative banks
• Life insurance businesses
• Gambling businesses
• Dealers in foreign exchange
• Credit providers
• Financial services providers
• Issuers of travellers’ cheques and money orders
• The South African Postbank
• Money or value transfer service providers
• High-value goods dealers
• The South African Mint Company
• Crypto asset service providers
• Clearing system participants

Key Compliance Obligations for Accountable Institutions

Should your business fall within Schedule 1 of the FIC Act, then you are an accountable institution and you must comply with several FICA obligations, including:

• Registering with the Financial Intelligence Centre (FIC)
• Appointing a FICA compliance officer
• Developing and implementing a Risk Management and Compliance Programme (RMCP)
• Performing Customer Due Diligence (CDD)
• Submitting reports to the FIC
• Keeping records
• Providing ongoing training
• Submitting the required risk and compliance returns as per Directives 6 & 7
• Screening employees as per Directive 8

We’ve created a detailed overview that covers each of these obligations, which you can access here.

What Happens if You Don’t Comply?

Non-compliance with FICA can have serious consequences. Depending on the nature and severity of the offence, consequences may include a public reprimand, a remediation directive, the restriction or suspension of certain business activities, or a financial penalty. In more serious cases, penalties may include imprisonment of up to 15 years or fines of up to R100 million.

These penalties may apply not only to the business, but also to executives, owners, or employees involved in non-compliant activities.

Ensure Your Business is Compliant

FICA compliance is not just about avoiding penalties. Proper compliance helps safeguard your business, your clients, and ultimately, South Africa’s financial system. With nCino KYC as your FICA compliance partner, you do not have to navigate this alone. Whether you need help developing an RMCP, streamlining your client onboarding process, or simply understanding where to start, our team is here to support you.

As always, nCino KYC is committed to bringing you the latest news and information relating to the FIC Act. If you haven't already, sign up to our Newsletter to keep updated with the latest Financial Crime, AML and FICA compliance news.