At Sanlam, we’ve taken great strides to ensure we’re ready for the FIC Amendment Act enforcement date on 2 April 2019*. To simplify PDD, as we call this project internally, we’ve extracted some of the important aspects of the requirements to present as a series of ‘Did you know’ snippets over coming editions of Inside Sanlam Distribution.
Did you know?
You need to be extra diligent when dealing with legal entities.
According to the FIC, legal entities are vulnerable to money laundering as they can be used to disguise the:
- Identity of known or suspected criminals
- True purpose of a transaction
- Source of funds.
What do intermediaries need to do?
- Please act promptly if we request extra information from you. Should Sanlam’s risk assessment indicate a high level of risk, additional information or documentation may be requested, for example, from an independent third party
- Keep your eyes open for anything that looks suspicious and report it to the appropriate parties
- If you notice suspicious transactions, forms and suspicious transaction reporting processes are available on SanPort or the Sanlam intranet.
Let’s partner as crime fighters to protect our business, industry and our clients. For a reference guide with the details of the various requirements, click here.
The next snippet will focus on dealing with third-party payers.
* What’s happening on 2 April, and what is PDD?
Accountable institutions have until 2 April 2019 to fully implement the requirements of the Financial Intelligence Centre (FIC) Amendment Act. At Sanlam, we call the project Party Due Diligence (PDD). This covers the legal requirements related to combating financial crimes, including terrorist financing, money laundering, tax evasion and bribery. It refers to the processes that businesses must follow to verify exactly who they’re doing business with. PDD requirements cover a range of South African and international legislation, including the FIC Amendment Act, Foreign Accounts Tax Compliance Act (FATCA) and the Organisation for Economic Co-operation and Development’s Common Reporting Standards (CRS).