financial intelligence centre REPUBLIC OF SOUTH AFRICA COMPLIANCE ROAD SHOW P… · • Importance of the FIC Act Money Laundering • How ML affects society • What is terrorism

financial intelligence centre REPUBLIC OF SOUTH AFRICA

Financial Intelligence Centre

Compliance Awareness

Road Shows

Presented by

The Financial Intelligence Centre

financial intelligence centre

REPUBLIC OF SOUTH AFRICA -2-

CONFIDENTIAL

Agenda

• The FIC

• Functions of the FIC

• Importance of the FIC Act

• Money Laundering

• How ML affects society

• What is terrorism

• How is terrorism financed

• Terrorism model

• Compliance framework

• Duties of Accountable Institutions (AIs)

• Reporting Statistics 2011/2012 FY

• FATF



CONFIDENTIAL


Established in terms of section 2 of the FIC Act

The objectives of the FIC are:

To assist in identifying proceeds of unlawful activities and combating of

money laundering and terror financing

To make information available to investigating authorities, SBs,

intelligence services and SARS

Exchanging AML/CFT information with bodies in other countries that

have similar objectives

Supervise and enforce compliance with the FIC Act



CONFIDENTIAL

Functions of the Financial Intelligence Centre

• Collect, process, analyse and interpret information

• Inform, advise and cooperate with investigating authorities, supervisory

bodies, SARS and the intelligence services

• Monitor and give guidance to accountable institutions, supervisory

bodies and other persons regarding FIC Act duties and responsibilities

• Retain information in a manner as set out in the FIC Act

• Implement a registration system in respect of all AIs and RIs

• Supervise and enforce compliance with the FIC Act



CONFIDENTIAL

Importance of the FIC Act

• Preserves and enhances SA reputation for sound governance and

policies

• Brings SA legislation and framework in line with international standards

and expectations

• Complements the Prevention of Organised Crime Act 1998 (POCA),

which defines the crime of money laundering and also anti-terror

legislation (POCDATARA), promulgated in 2005.

• Objective is to remove the business element from “the business of crime”

• Establishes SA as part of international efforts to combat

money laundering

terror financing



CONFIDENTIAL

Importance of the FIC Act

According to the Task Force on Financial Integrity and Economic

Development:

Every year, developing countries lose approximately $1.3 trillion in illicit

financial outflows—the proceeds of crime, corruption, tax evasion, and

trade mispricing. This loss of capital outpaces current levels of foreign

aid by a ratio of 10 to 1. Curtailing these outflows is crucial to nurturing a

stable and robust economic recovery in global markets, stamping out

political corruption and crime, and fostering good governance…

1 1 “Message to the G-20” Task Force on Financial Integrity and Economic Development. (13 October 2011)

http://www.financialtaskforce.org/2011/10/13/2011-task-force-conference-communique-a-message-to-the-g20/



CONFIDENTIAL

Money Laundering



CONFIDENTIAL

Money Laundering

• Money laundering involves criminals and their associates trying to hide

the fact that their proceeds and funds come from illegal activities

• In order for crime to pay, a criminal must be able to enjoy whatever it is

they have taken and are not entitled to

• Criminals channel dirty money through legitimate businesses and

institutions such as banks, casinos, estate agencies, brokers, etc

• Money laundering involves the proceeds of criminally derived property

rather than the property itself

• Is not dependant on specific predicate crime only – all criminal activities

could lead to money laundering



CONFIDENTIAL

Money Laundering

Why Launder money:

• Avoid prosecution

• Increase profits/reinvest in criminal activities

• Avoid seizure of accumulated wealth

• Appear legitimate

• Enables criminal to expand and carry on with criminal activities

Money laundering is NOT about cash – it’s about the

PROCEEDS of crime



CONFIDENTIAL

How Money Laundering affects society

• The economic and political influence of criminal organisations can weaken

the social fabric

• Decimates collective ethical standards & the democratic institutions of

society

• Corrupts public officials and governments

• Countries that attract money launderers and criminals may find it difficult

to create conditions for sustainable development and achieve long-term

economic growth

• Enables criminal activity to continue

• Any business or person who aids money laundering can suffer immense

damage to their reputation



CONFIDENTIAL

What is terrorism

• A criminal act that influences an audience beyond the immediate

victim

• Might have as its aim(s) to:

Produce widespread fear

Create doubt that the government can provide for and protect its citizens

Attract media attention to obtain recognition for their cause

Weaken, or embarrass government security forces

Free prisoners

Satisfy vengeance

Influence government decisions

Discourage foreign investment & tourism



CONFIDENTIAL

How is terrorism financed?

• Legitimate income sources

• Small sums in comparison to money laundering

• Disguise and transfer funds through charities & non-profit organizations

• Money in terrorist financing is the means not the end

Monthly debit orders from employed individuals

Proceeds from legal businesses or investments

Collection of membership levy and/or subscriptions

Voluntary donations by individuals & businesses to legitimate/sham

charitable, religious and non profit organisations

Direct contributions by governments or government agencies



CONFIDENTIAL

How is terrorism financed?

• Sources are robust and low-key

• Use of illegitimate & legitimate funds

• A wide variety of crimes may be used to finance operations:

drug trafficking

identity theft

credit card theft

social grant theft

personal & commercial vehicle hijacking

organised shoplifting gangs

reselling of stolen property

contraband cigarettes

sale counterfeit watches, textiles DVD’s, CD’s & software

underground banking


REPUBLIC OF SOUTH AFRICA


REPUBLIC OF SOUTH

AFRICA

Terrorism financing model

Acquisition of funds

Movement from

various sources – not

everyone

aware of intended purpose

Aggregation – pooling of

smaller amounts into larger ones

Transmission -

Movement of funds

to central terrorist

Organisation /

representative

Transmission to cells

Allocation of funds to

different terrorist cells

Conversion

Funds exchanged

for end use goods &

services to carry out

terrorist activities



CONFIDENTIAL

Compliance Framework

Duty Section

Applicable

Regulations

Applicable

guidance

notes or

PCCs

Applicable

exemptions Administrative

sanction Criminal sanction

Establishment of

identity of clients and

other persons 21 3 to 19 & 21

GN 1, 2, 3

PCC03 &

03A, 11, 14,

15

2 to 16 R50 million for legal

person R10 million for

natural person

R100 million or 15 years

imprisonment

Duty to keep records 22; 23 & 24 20 & 26 PCC02 3 TO 17 R50 million for legal


natural person


imprisonment

Reporting duties 28; 28A &

29

22; 22A; 22B;

22C; 23; 24;

27A; 27B &

27C

GN 4 & 5

PCC04 N/A

R50 million for legal


natural person


imprisonment

Formulating and

implementing of internal

rules 42 25; 26 & 27 PCC12 N/A



natural person


imprisonment

Training of employees

regarding the FIC Act

and internal rules 43(a) N/A PCC12 N/A



natural person


imprisonment

Appointment of the

compliance officer 43(b) N/A PCC 12 N/A



natural person


imprisonment

Registration with the

Centre 43B 27A

GN05

PCC05 ,

PCC06 N/A



natural person


imprisonment



CONFIDENTIAL

Duties of AI’s in terms of FIC Act

Duty to establish and verify the identity of clients (section 21)

• An accountable institution may not establish a business relationship or

conclude a single transaction unless the prescribed steps have been

taken to establish and verify the identity of:

The client

The person representing the client

The person for whom the client may be acting (beneficial

owner/person who has ultimate control)



CONFIDENTIAL

Duties of AIs in terms of FIC Act

• The information and verification process differs depending on whether

the client is a:

Natural person

Company

Close corporation

Partnership

Trust

Legal entity

Identification and verification requirements are listed in the Money

Laundering and Terrorist Financing Control Regulations to the FIC Act



CONFIDENTIAL


Duty to keep records (section 22, 23 and 24)

• Documents that must be kept

• What procedure does an AI follow in terms of record keeping?

• Who has access to these records?

• Is it documented?

• Period to keep records

• Third parties

• Are records readily available?

• Is there a policy in place that outlines the access control to these

records?



CONFIDENTIAL

Reporting Duties of AIs in terms of FIC Act

Cash Threshold reporting (section 28)

• Introduced for all AIs and RIs on 1 December 2010

• Threshold amount is R24 999.99

• Different reporting options

• Report within 2 business days after becoming aware

• Accumulation

• Dual reporting

• 2011/2012 FY more than 5.5 million CTRs received



CONFIDENTIAL


Section 4 of POCDATARA makes it an offence to be associated or

connected to the financing of specified offences

Section 28A of the FIC Act

An accountable institution which has in its possession or under its control

property owned or controlled by or on behalf of, or at the direction of:

• Any entity which has committed or facilitated the commission of a

specified offence as defined in POCDATARA

• A specific entity identified in a notice issued by the President, under

section 25 of the POCDATARA Act – No list in South Africa [UN1267,

replaced by 1988 (Taliban) and 1989 (Al Qaeda)]



CONFIDENTIAL


Section 29 - Suspicious Transaction Reports (STR’s)

• Defining a suspicion

• Who must report? This obligation applies to:

a person who carries on a business

a person who is in charge of a business

a person who manages a business or

a person who is employed by a business

• Tax evasion (section 29 b iv)

• STR’s have no cash threshold

• Time period for reporting – ASAP (not later than 15 working days)

• Continue transaction (section 33)

• Protection of person making report (section 38)



CONFIDENTIAL


How to report

• Complete prescribed form – on the Centre’s website

• Prefer internet based reporting

• Only in exceptional cases may report be faxed or hand delivered

• Regulation 22 – 24 of the Money Laundering and Terrorist Financing

Control Regulations

• May NOT be posted



CONFIDENTIAL


Section 42 – Internal rules

• An AI must formulate and implement internal rules to document

procedures for:

The establishment and verification of client identities – Regulation

25

Record keeping – Regulation 26

Reporting of STRs – Regulation 27

Appointment of a compliance officer – Section 43

• The board of directors and senior management of an accountable

institution are responsible for compliance with the FIC Act

• Internal rules should be approved by the board of directors and senior

management and be made available to Centre and Supervisory Body

(SB) on request



CONFIDENTIAL


Section 43 – Appointment of compliance officer

• An AI has a duty to formally appoint a compliance officer – Person

responsible for FIC Act compliance

• The compliance officer should have general knowledge of the overall

operations of the institution

• Interact with all of the departments and branches to keep abreast of

changes that may require action to manage perceived risk

• The compliance officer must have access to all areas of the institution’s

operations to effect corrective action



CONFIDENTIAL


Section 43 – Training and monitoring of compliance

• An AI must provide training to its employees on the FIC Act and internal

rules

• A compliance officer is responsible for ensuring that training takes place

• Training manual must frequently be updated

• Training should be ongoing with regular refresher courses

• Employees may be assessed to evaluate level of knowledge and

understanding

• Employees should not deal with clients if they have not yet received

training on FIC Act and the AI’s internal rules



CONFIDENTIAL


Section 43B – Registration

• Each AI to be registered separately (including franchises, branches)

• Registration online – unless impossible then manually

• Registration deadline was 01 March 2011

• Existing before 01 March 2011 still encouraged to register

• New – 90 days to register from business start

• Contents of online registration form

• Validation process

• No registration fees

• Money Laundering Reporting Officers

• Amendments to registration information



CONFIDENTIAL

Reporting Statistics 2011-2012 FY

During the reporting period:

• More than 5.5 million CTRs to the minimum value of R138 billion were

made to the FIC

• A total of 53 506 STRs were received from businesses and individuals.

These reports may signal the presence of illegally generated funds.

• FIC froze 482 bank accounts that were believed to be harbouring the

proceeds of unlawful activities



CONFIDENTIAL

Financial Action Task Force

• International standard setting body for FIUs

• Develop and promote national and international standards and policies

to combat money laundering and terrorist financing

• Standards expressed in the form of “recommendations” – 40 Recommendations on Money Laundering – Original

recommendations reviewed and revised recommendations published February 2012

• In Feb 2009, FATF released a favourable assessment report of a second

mutual evaluation it conducted on SA in late 2008 - shortcomings

currently being addressed



CONFIDENTIAL

Feedback and Enquiries

• Enquiries by e-mail: [email protected]

• Compliance and Preventions (CAP) Contact Centre: +27 860 222 200



CONFIDENTIAL

Questions & Answers


REPUBLIC OF SOUTH AFRICA


REPUBLIC OF SOUTH

AFRICA


Compliance Awareness Road Shows

Supervision and Enforcement

Presented by

The Financial Intelligence Centre



CONFIDENTIAL

Introduction



CONFIDENTIAL

Principles of the FIC Act Supervision &

Enforcement Model

• All Accountable and Reporting Institutions will be supervised by a SB or

the FIC

• The FIC Act supervision and enforcement model is built on consensus

between the SBs and the FIC

• There needs to be a standardised approach in supervision and

enforcement of the FIC Act

• The FIC must facilitate effective supervision and enforcement by

supervisory bodies - s3(2)(c)



CONFIDENTIAL

Principles of the FIC Act Supervision &

Enforcement Model



CONFIDENTIAL

FIC Act Supervision & Enforcement Model



CONFIDENTIAL


• SBs take responsibility to supervise and enforce all the compliance

obligations imposed on accountable institutions regulated by the SB

• The FIC takes responsibility to supervise and enforce non-compliance

with the FIC Act on accountable and reporting institutions not regulated

or supervised by a SB

• The FIC takes responsibility to supervise and enforce non-compliance

with the FIC Act on accountable institutions regulated or supervised by a

SB where the SB fails to fulfil its responsibilities



CONFIDENTIAL


• It is the duty of the FIC to:

– Monitor and give guidance to accountable institutions, supervisory

bodies and other persons regarding the performance and compliance

by them of their duties and obligations in terms of the FIC Act or any

directive made in terms of the FIC Act - s4(c)

– Annually review the implementation of the FIC Act and submit a

report to the Minister - s4(e)



CONFIDENTIAL


• SBs may:

– Issue or amend any licence, registration, approval or authorisation

that the SB may issue or grant in accordance with any act to include

compliance with the FIC Act – s45(1B)(e)

– In making a determination in accordance with any act applicable as

to whether a person is fit and proper to hold office in an accountable

institution, take into account any involvement, directly or indirectly, by

that person in any non-compliance with the FIC Act or any order,

determination or directive made in terms of the FIC Act – s45(1B)(f)



CONFIDENTIAL


• Every SB is responsible for supervising and enforcing compliance with

the FIC Act by all AIs regulated or supervised by it – s45(1)

• The obligation forms part of the legislative mandate of any SB and

constitutes a core function of that SB – s45(1A)(a)

• The only exceptions, where the FIC takes prime responsibility, would be:

– Registration with the FIC

– Reporting to the FIC



CONFIDENTIAL


• SBs are listed in Schedule 2 to the FIC Act and include the Financial

Services Board, BSD, Finsurv, NPSD, EAAB, IRBA, NGB, PLAs and

Provincial Law Societies

• The FIC is responsible for supervising and enforcing compliance with the

FIC Act by all AIs not regulated or supervised by an SB which include:

– Trust companies

– Entities who lend money against the security of securities

– The Postbank

– Ithala Development Corporation

– MVDs (reporting institution)

– Kruger Rand dealers (reporting institution)



CONFIDENTIAL

Directives

• The FIC may by notice in the Gazette, issue directives to all institutions

to which FIC Act applies regarding application of the FIC Act - s43A(1)

• The FIC or SB may, in writing, issue a directive to a category of

accountable or reporting institution or other category of person to whom

the FIC Act applies regarding application of the FIC Act - s43A(2)

• SB may issue directive only after consulting with the FIC – s43A(6)(b)



CONFIDENTIAL

Risk Based Approach to Supervision

• SBs follow a risk based approach to supervision:

– Assist in choosing the entity to be inspected

– Assist in deciding the frequency and intensity of the inspection

– This will allow resources to be allocated in the most efficient way

– Resources should be directed in accordance with priorities -

greatest risks receive the highest attention

– Proportionate administrative actions will be taken

– Adhere to international standards



CONFIDENTIAL

RBA Model to supervision

Inherent Risks Internal Controls Residual Risk



CONFIDENTIAL

What is Risk

• Risk is defined as the effect of uncertainty on objectives

• What is inherent risks:

Inherent risks are characteristics of the institution that makes it vulnerable to

money laundering and terrorist financing

• What is internal controls:

Internal controls are mitigating factors implemented by the institution to

mitigate the inherent risks

• What is residual risks:

Inherent risks – Internal controls = Residual risks



CONFIDENTIAL

Inherent Risks

• In determining inherent risks, the following needs to be taken into account:

– Products and services risks (cash based products, international products,

exemptions)

– Customer profile risks (non-face-to-face customers, legal entities)

– Distribution channel risks (branches, borders, airports)

– Jurisdiction risks (foreign jurisdictions, borders, provinces)

– Business structure risks (large companies, high turn over)

– Previous interaction with the institution (inspections, meetings, letters)

– Complaints received (media reports, M&A referral, RI from IRBA,

complainants, FIC reporting)

– National and international trends & typologies on ML/TF (SBs to determine)



CONFIDENTIAL

Inspections in terms of the FIC Act

• The purpose of inspections in terms of the FIC Act is to determine the

level of compliance of the accountable institution

• The FIC and supervisory bodies cannot use the inspections powers to

investigate any criminal conduct

• Should the FIC or supervisory body detect any criminal conduct during

an inspection, it may refer the matter to law enforcement to investigate

• The allegations of criminal conduct may be an indication that an

accountable institution has not complied with the FIC Act and may lead

to an inspection



CONFIDENTIAL

On-site reviews v Inspections

• The difference between on-site reviews and inspections:

– FSB legislation draws the distinction between on-site reviews and

inspections

– In the FSB and practically, the Compliance Departments are utilising

on-site reviews, whilst the Inspectorate Departments are utilising

inspection powers

– Inspection powers are more intrusive than the on-site review powers



CONFIDENTIAL

On-site reviews vs Inspections

– The outcome of an on-site review is usually a compliance request to

rectify any deficiencies, whilst the outcome of inspections usually lead

to administrative sanctions

– On-site reviews are pro active and preventative in nature in that it is

aimed at guiding and advising institutions to be compliant with

legislation

– Inspections are usually reactive in nature and occurs when information

is received that an institution is willfully non-compliant with legislation



CONFIDENTIAL

On-site reviews v Inspections

• The FIC Act does not draw a distinction between on-site reviews and

inspections

– An inspection in terms of the FIC Act can therefore be pro active or

reactive, routine or non-routine

– The inspection team will decide on the intensity of the inspection

– A FIC Act inspection may be conducted by any department of the

FSB

– The outcome of a FIC Act inspection may be a compliance request

to rectify any non compliance or an administrative sanction

depending on the facts of the case



CONFIDENTIAL


• Provisions are similar to the provisions in the Inspections of Financial

Institutions Act

• Head of SB must appoint inspectors prior to inspection

• Head of SB may extend the appointment and functions under the

Inspections Act to include the undertaking of inspections under the FIC

Act

• Inspection done at reasonable time and notice where appropriate

• Secrecy



CONFIDENTIAL

Types of Inspections

Routine Non-routine

Proactive Reactive

By notification Discretion

Preventative in nature React on information received regarding

possible non-compliance

Less intrusive More intrusive

Remedial/

Sanction

Remedial/

Sanction

Costs if non-compliance Costs if non-compliance



CONFIDENTIAL

Scope of inspections

Duty Section Applicable

Regulations

Applicable

guidance

notes or

PCCs

Applicable

exemptions Administrative sanction Criminal sanction

Identify and verify client 21 3 to 19 & 21

GN 1, 2, 3

PCC03, 03A,

08, 09, 10, 11,

14, 15

2 to 16 R50 million for legal person R10

million for natural person R100 million or 15 years

imprisonment

Duty to keep records 22; 23 & 24 20 & 26 PCC02 3 TO 17 R50 million for legal person R10


imprisonment

Reporting duties 28; 28A & 29 22; 22A; 22B;

22C; 23; 24;

27A; 27B & 27C

GN 4 & 5

PCC04 N/A

R50 million for legal person R10


imprisonment

Formulating and implementing of

internal rules 42 25; 26 & 27 N/A N/A



imprisonment

Training of employees regarding the

FIC Act and internal rules 43(a) N/A N/A N/A



imprisonment

Appointment of the compliance officer 43(b) N/A PCC 12 N/A R50 million for legal person R10


imprisonment

Registration with the Centre 43B 27A GN05 PCC05,

06, 07, 13 N/A



imprisonment



CONFIDENTIAL


SB leads inspection

accompanied by the FIC

SB is the lead on general

compliance and FIC on registration

& reporting

One inspection report issued by SB. SB to issue

the sanction

SB leads inspection not accompanied

by the FIC

FIC to advise SB on registration and

reporting

One inspection report issued by SB. SB to issue

sanction

FIC leads inspection

(registration & reporting only)

FIC is the lead on registration &

reporting & SB assist

One inspection report issued by the FIC. FIC to issue sanction



CONFIDENTIAL

Powers of inspectors

• Question anyone

• Order any person to produce a document

• Open any strong room or container

• Access any computer system or equipment

• Examine, make copies or seize any document



CONFIDENTIAL

Inspections

• Inspection is based on a questionnaire

• The questionnaire covers all the compliance duties of an accountable

institution

• The s43 compliance officer and/or CEO/Director/Head of the institution is

required to attend the inspection

• Certain documentation will be requested prior to the inspection i.e.

– Appointment letter of s43 compliance officer

– Internal rules

– Training manual & documents



CONFIDENTIAL

Inspections

• Staff members will also be questioned

• Sampling of client files will be done to determine:

– Client Identification and Verification (CIV) obligations

– record keeping obligations

– reporting obligations

• The amount of files sampled will be determined by the type and scope of

the inspection

• The process, procedure or system for detecting and reporting CTRs and

STRs will also be tested



CONFIDENTIAL

Collecting evidence

• Seize original documentation against issue of a receipt

• Documents may also be scanned

• Maintain evidence register



CONFIDENTIAL

Inspection offences

• The failure to appear for questioning

• The failure to produce a document

• Intentionally gives false information

• The failure to comply with a reasonable request

• Intentionally hinders an inspector in the performance of his functions

• Administrative penalty:

– Natural person: R10 million

– Legal person: R50 million

• Criminal penalty:

– 5 years imprisonment

– R10 million



CONFIDENTIAL

Post inspection

• An inspection report is written by the inspectors

• Inspected institution to provide comments on the inspection report

• Final inspection results issued



CONFIDENTIAL

Costs

• The FIC or a SB may recover all expenses necessarily incurred in

conducting an inspection from an AI, RI or person inspected – s45B (3)

• Inspection manual: cost will only be recovered when material

non-compliance is found

• Where FIC accompanies a SB, FIC will pay their own costs. Those costs

cannot be recovered from the AI



CONFIDENTIAL

Administrative Sanctions

• The FIC or SB may impose an administrative sanction on any AI, RI or

other person to whom the Act applies when satisfied on available facts

and information that the institution or person:

– Has failed to comply with the FIC Act

– Has failed to comply with a condition of a licence, registration,

approval or authorisation issued i.t.o s45 (1B)(e)

– Has failed to comply with a directive

– Has failed to comply with non-financial administrative sanction



CONFIDENTIAL


• The decision to sanction or not will depend on the following factors:

– the willingness of the AI to comply

– the nature, duration, seriousness and extent of the non-compliance

– whether the AI has previously failed to comply with the FIC Act

– any remedial steps taken by the institution or person to prevent a

recurrence of the non-compliance

– any other mitigating or aggravating factors



CONFIDENTIAL


• The FIC or SB may impose any appropriate administrative sanction –

s45C (6)

• The FIC Act provides various administrative sanctions which includes:

– a caution not to repeat the conduct which led to the non-compliance

– a reprimand

– a directive to take remedial action or to make specific arrangements

– the restriction or suspension of certain specified business activities

– a financial penalty



CONFIDENTIAL


• SBs to consult the FIC before imposing an administrative sanction

• SB to impose sanction after representations from the inspected

institution – s45C (5) & (6)

• The Director or SB must, subject to certain conditions, make public the

decision and nature of the sanction imposed – s45C (11)



CONFIDENTIAL

Penalties imposed

• Any financial penalty imposed must be paid into the Criminal Assets

Recovery Account (CARA) established by s63 of POCA - s45C (7)

• CARA is controlled by a Ministerial committee - s65 of POCA

• The committee is to advise Cabinet in connection with the rendering of

financial assistance to law enforcement agencies and any other

institutions, organisations or funds established with the object to render

assistance to victims of crime - s68, 69 & 69A of POCA



CONFIDENTIAL

Appeals

• The appellant must lodge an appeal against a decision of the FIC or SB

made in terms of s45C (6) with the chairperson of the Appeal Board –

regulation 27C

• Where the SB conducted inspections i.t.o. other legislation as well there

will be more than one report

• If the appeal is against FIC Act sanction and sanction of another

legislation, the appeals will split



CONFIDENTIAL

Appeals

• The appellant must, with the appeal, pay a fee of R10 000 to the FIC –

regulation 27C (d)

• If the Appeal Board sets aside the decision of the FIC or SB, the

R10 000 must be refunded to the appellant – s45D (10)(a)

• If the Appeal Board varies a decision of the FIC or SB, it may direct that

the whole or part of the R10 000 be refunded to the appellant – s45D

(10)(b)

• Any party to an appeal is entitled to be represented at an appeal by a

legal representative – s45D (6)



CONFIDENTIAL

Appeals

• An appeal fee of R10 000 (ten thousand rand) is payable to the FIC and

proof of such payment must accompany the notice of appeal

• The payment must accompany the name of the appellant as reference

together with “Reg 27C(d) fee” when making the payment

• The bank details of the FIC can be found on the notice issued by FIC on

its website

• The appellant must complete the notice of appeal form within 30 days

from the date when notice of the decision by the SB or the FIC was

received in writing by the appellant

• The notice of appeal, proof of payment of the appeal fee and any

relevant documents must be hand delivered to the Secretary



CONFIDENTIAL

Appeals

• The office hours of the Secretary are 08:00 to 16:00 on business days

and documents will only be received between these hours

• The notice of appeal will only be accepted by the Secretary of the Appeal

Board if all procedural and legal requirements have been adhered to

• A set of the notice of appeal and other relevant documents must also be

delivered to the SB if the SB imposed the administrative sanction

• The Secretary of the FIC Act Appeal Board will notify all relevant parties

of the date of the appeal including all procedural requirements, after

consultation with the Appeal Board members and relevant parties



CONFIDENTIAL

Conclusion

•



CONFIDENTIAL

Questions & Answers