FICA & Training

Accountable institutions such as lawyers, financial services providers and estate agents (among others) are required by the Financial Intelligence Centre Act 38 of 2001 (FICA) to provide training to staff on FICA in terms of section 43. The training must enable staff to comply with FICA and the internal rules of the company itself and it is not a requirement that this particular training puts them to sleep (although some compliance training providers can readily be regarded as sleep training experts).

A recent "Public Compliance Communication No. 18" by the FIC stated that the training must educate the employees on a range of different factors. Different training levels can be implemented at different levels of the organisation. We believe one can have a General Awareness for all staff in the company and then a more in-depth Specific Awareness training course. However, as always, it depends on the organisation to conduct training commensurate to the risks it is facing.

"The training can take place in any manner that the company deems fit. I.e. online or in person."

The training can take place in any manner that the company deems fit. I.e. online or in person. Tests must also be done to assess the knowledge gained and record must be kept of the training given and attendance. The FIC stated that the training must be "ongoing" and "refresher" training must be conducted. We believe that a good rule of thumb is to do any AML/FICA/KYC training once a year and as soon as any new joiners start with a company.

Any non-compliance with the Act in relation to the above-mentioned can result in a fine of R10 million and 5 years in prison.

So, if you don't want to be a jailbird, ensure your training procedures are in place or give us a shout to provide you with training at: hello@horizoncompliance.co.za.