THE FINANCIAL INTELLIGENCE CENTRE REMINDS PROPERTY PRACTITIONERS  TO SUBMIT THEIR RISK AND COMPLIANCE RETURNS

The Financial Intelligence Centre (FIC) is urging property practitioners to complete and submit their risk and compliance returns in terms of Directive 6 without further delay.

Published on 31 March 2023, Directive 6 applies to property practitioners as listed in item 3 of Schedule 1 to the Financial Intelligence Centre (FIC Act) and other accountable institutions that are part of the category of designated non-financial business and professions (DNFBPs).

The submission of risk and compliance returns enables the FIC to measure property practitioners’ understanding of money laundering, terrorist financing and proliferation financing (ML, TF and PF) risks. In addition, the FIC can assess the inherent risks of ML, TF and PF risks the sector faces, and supervise property practitioners according to a risk-based approach.  

The risk and compliance return for property practitioners cover the reporting period from 1 April 2022 to 31 March 2023 and must be submitted to the FIC urgently as the due date passed on 31 May 2023. The online portal remains open for property practitioners who have not yet submitted their risk and compliance returns to do so urgently.

Thus far a very small number of registered property practitioners have submitted their risk and compliance returns. Property practitioners are reminded that non-compliance with the FIC Act, including Directive 6, carries serious consequences such as administrative sanctions and financial penalties.

Refer to public compliance communication 56 for guidance on the definition of property practitioners in terms of Schedule 1 to the FIC Act. Property practitioners must first register with the FIC and obtain an organisational identification (ORG ID) number before they can fulfil their other FIC Act compliance obligations, including submitting a risk and compliance return. If you are a property practitioner and have not yet registered with the FIC, please do so urgently on the FIC website.

To view an example of the risk and compliance returns questionnaire, refer to the consultation feedback note on Directive 6 which is available here. Please complete the risk and compliance return online as the FIC will not accept submissions in any other format. You may access the link to complete the risk and compliance return in terms of Directive 6 here.

Find more compliance information and guidance offered to accountable institutions on the FIC website (www.fic.gov.za). The FIC’s compliance contact centre can be reached on +27 12 641 6000 or log an online compliance query by clicking on: http://www.fic.gov.za/ContactUs/Pages/ComplianceQueries.aspx