Did You Miss the FIC’s Deadline?
You Should Have Done This
Many Credit Providers may have missed the Financial Intelligence Centre’s December 2023 deadline and could get into a lot of trouble.
The Financial Intelligence Centre (FIC) is a regulatory body in South Africa entrusted with overseeing and enforcing measures to combat money laundering, terrorist financing, and other financial crimes.
The FIC set a deadline of the 1st of December 2023 for all credit providers to register with them and ensure compliance with the FIC Act.
But what happens if you missed the boat?
Well, it’s not great; the consequences of non-compliance are pretty heavy, leaving your business vulnerable to possible administrative sanctions, including serious financial penalties.
Nobody wants that!
But if you did miss the deadline in December, trying to hide is not a sustainable long-term solution. It is better to go cap in hand and register, as soon as possible. You don’t want them to catch you later and decide to make an example of you.
“You don’t want them to catch you later and decide to make an example of you”
The good news is that the FIC’s primary function is collecting, analysing, and disseminating financial intelligence to relevant authorities, assisting in the identification and prevention of illicit financial activities. If you are not up to nonsense, this means you should be fine, as long as you try to comply with their requirements.
The FIC works in association with various stakeholders like banks, financial institutions, and law enforcement agencies to ensure a coordinated effort in safeguarding the country from the detrimental effects of criminal activities. SA already has a poor reputation in this regard, with grey listing and a history of high-ranking politicians on the take.
Do These 3 Things
First, check the extended definition of Credit Providers under FICA. You may actually be required to comply with their requirements, even if you are not considered a credit provider under the National Credit Act.
Second, if you must register with the FIC, even though you missed the deadline, don’t hide.
Third, make sure that your business adheres closely to all compliance obligations stipulated in the FIC Act. Google it, and read what action is required.
Sticking To the Law Can Make Your Business More Successful
Non-compliance with the FIC Act not only puts your business at risk, but could lead to serious financial consequences.
While it may seem like a pain to have to register with another body and have a new set of requirements in running your business, you could view it as an opportunity to make your business even better.
Better businesses stay afloat longer, and make their clients happier. Happy clients ultimately means more clients down the line.