FSCA SANCTIONS ON MOMENTUM WEALTH AND MOMENTUM COLLECTIVE INVESTMENTS
“a reminder to accountable institutions to regularly submit CTRs, risk-rate clients (and potential clients) and comply with your own RMCP”
This blog is about the recently imposed administrative sanctions on Momentum Wealth (Pty) Ltd and Momentum Collective Investments RF (Pty) Ltd by the FSCA.
The broad reason for the sanctions was the ineffective money laundering/terrorist financing control measures of both accountable institutions, as required by the FIC Act. The total financial penalty imposed by the regulator on these institutions amounted to R11,100,000.00 (excluding an amount of R100,000.00 which is suspended for three years).
The breaches identified by the FSCA were the following:
Non-compliance with cash threshold reporting (CTR) requirements on historic transactions (2010-2017).
Risk-rating failures:
Momentum Wealth failed to identify, verify and risk rate a beneficiary of one trust in terms of s 21B of the FIC Act.
Momentum CIS failed to risk rate 38 clients in line with their own RMCP.
These cases serve as a reminder to accountable institutions to regularly submit cash threshold reports, risk-rate clients(and potential clients) and comply with your own RMCP.
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