Help the fight against crime

Re­port sus­pi­cious and un­usual trans­ac­tions to the Fi­nan­cial In­tel­li­gence Cen­tre

Finweek English Edition - - ADVERTORIAL - The FIC as­sisted the South African Po­lice Ser­vice (SAPS) in a fraud in­ves­ti­ga­tion in­volv­ing theft of R1m from a com­pany by a SAPS em­ployee. The FIC iden­ti­fied the flow of money as­so­ci­ated with the theft, re­veal­ing the bank ac­count, in­sur­ance poli­cies and

The Fi­nan­cial In­tel­li­gence Cen­tre (FIC) is re­mind­ing all busi­nesses of their obli­ga­tion to note any un­usual, sus­pi­cious or ab­nor­mal trans­ac­tions which may oc­cur dur­ing the course of their busi­ness, and to re­port these to the FIC. The man­date of the FIC is to iden­tify the pro­ceeds of un­law­ful ac­tiv­i­ties and to com­bat money laun­der­ing and the fi­nanc­ing of ter­ror­ist and re­lated ac­tiv­i­ties. Re­port­ing sus­pi­cious and un­usual trans­ac­tions is re­garded as an es­sen­tial el­e­ment of ful­fill­ing this man­date.

The FIC is a mem­ber of the Fi­nan­cial Ac­tion Task Force (FATF), the global anti-money laun­der­ing and anti-terror fi­nanc­ing stan­dards set­ting body. South Africa joined FATF in 2003, bring­ing the coun­try in line with in­ter­na­tional stan­dards and prac­tices for anti-money laun­der­ing and com­bat­ing terror fi­nanc­ing. The Fi­nan­cial In­tel­li­gence Cen­tre Act No. 38 of 2001 (FIC Act) seeks to en­sure the in­tegrity of South African fi­nan­cial in­sti­tu­tions.

Var­i­ous com­pli­ance obli­ga­tions have been in­tro­duced in terms of the FIC Act to en­able the pro­tec­tion of in­sti­tu­tions against ex­ploita­tion by crim­i­nals and terror fi­nanc­ing net­works. In the ex­e­cu­tion of its man­date, the FIC re­quires all busi­nesses to sub­mit sus­pi­cious and un­usual trans­ac­tions re­ports (STRs) to the FIC. The obli­ga­tion to re­port STRs to the FIC in terms of sec­tion 29 of the FIC Act ap­plies to all busi­nesses in South Africa. The obli­ga­tion to re­port sus­pi­cious or un­usual trans­ac­tions ap­plies to any per­son who: Car­ries on a busi­ness Is in charge of a busi­ness Man­ages a busi­ness Is em­ployed by a busi­ness STRs must be re­ported to the FIC us­ing the online re­port­ing mech­a­nism – which can be found on the FIC’s web­site – za by click­ing on the Re­port­ing but­ton. The re­port should be sub­mit­ted to the FIC within 15 days af­ter the sus­pi­cion has been formed.

The FIC Act pro­tects the per­son who sub­mits the STR to the FIC. In ad­di­tion to pro­tec­tion against le­gal li­a­bil­ity, the iden­ti­ties of those in­volved in mak­ing a re­port to the FIC re­main con­fi­den­tial.

Sec­tion 29( 3) of the FIC Act pro­hibits a busi­ness or em­ployee of a busi­ness that has filed a STR with the FIC from dis­clos­ing, mak­ing avail­able or dis­cussing whether a STR has been filed with the FIC, or shar­ing that STR or the con­tent thereof, with any per­son. Fail­ure to re­port STRs could lead to ac­tion be­ing taken against the per­son/busi­ness that fails to sub­mit the STR to the FIC.

The FIC works closely with part­ners such as the South African Rev­enue Ser­vice, law en­force­ment agen­cies as well as other fi­nan­cial in­tel­li­gence units, and is man­dated to pro­vide fi­nan­cial in­tel­li­gence to help com­bat crime.

Be­low are some case stud­ies, taken from the FIC’s 2013/2014 an­nual re­port, il­lus­trat­ing how fi­nan­cial in­tel­li­gence pro­duced by the FIC has been es­sen­tial in as­sist­ing our part­ners in solv­ing crimes.

By re­port­ing sus­pi­cious and un­usual trans­ac­tions to the FIC, you are help­ing in the fight against crime.

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