Podcast
Questions and Answers
What triggers the obligation to report within 3 days in terms of section 28 of the FIC Act?
What triggers the obligation to report within 3 days in terms of section 28 of the FIC Act?
- When a client requests a loan above a certain amount
- When a client has multiple transactions below the cash threshold report
- When a client makes a large cash deposit
- When a transaction or series of aggregated transactions exceeds R49 999.99 (correct)
What is included in the definition of cash according to the FIC Act?
What is included in the definition of cash according to the FIC Act?
- Electronic funds transfers and digital currencies
- Only coins and paper money of the Republic
- Coins, paper money, and traveler's cheques (correct)
- Only foreign currency
When does the Section 28A 'TPR' obligation of the FIC Act apply?
When does the Section 28A 'TPR' obligation of the FIC Act apply?
- When an accountable institution has property of a sanctioned entity in its possession or control (correct)
- When an accountable institution discovers suspicious activity
- When an accountable institution detects fraudulent activity
- When a client requests a withdrawal above a certain amount
How can reports be submitted to the Financial Intelligence Centre?
How can reports be submitted to the Financial Intelligence Centre?
What should be done with suspicious transactions under investigation?
What should be done with suspicious transactions under investigation?
What should be referred to for CMEFS internal investigation and reporting procedures?
What should be referred to for CMEFS internal investigation and reporting procedures?
What must be done if a transaction cannot be delayed?
What must be done if a transaction cannot be delayed?
What is prohibited by Section 4 of the POCDATARA Act?
What is prohibited by Section 4 of the POCDATARA Act?
Who is prohibited from disclosing information about a report?
Who is prohibited from disclosing information about a report?
What is the purpose of limiting communication within CMEFS?
What is the purpose of limiting communication within CMEFS?
Where must transactions escalated for investigation be recorded?
Where must transactions escalated for investigation be recorded?
What is the purpose of storing records securely?
What is the purpose of storing records securely?
What is the role of the Money Laundering Reporting Officer in the approval process?
What is the role of the Money Laundering Reporting Officer in the approval process?
What is the purpose of Section 29 of the FIC Act?
What is the purpose of Section 29 of the FIC Act?
Which of the following reports would be filed with the FIC if an institution suspects a transaction may be related to terrorist financing?
Which of the following reports would be filed with the FIC if an institution suspects a transaction may be related to terrorist financing?
What is the time frame for a financial institution to notify the FIC after a directive to freeze assets has been issued?
What is the time frame for a financial institution to notify the FIC after a directive to freeze assets has been issued?
Which of the following is NOT a requirement for filing a Suspicious Transaction Report (STR)?
Which of the following is NOT a requirement for filing a Suspicious Transaction Report (STR)?
A compliance officer at a financial institution is responsible for which of the following tasks related to anti-money laundering (AML) regulations?
A compliance officer at a financial institution is responsible for which of the following tasks related to anti-money laundering (AML) regulations?
Which of the following best describes the "ought reasonably to have known" standard in the context of reporting suspicious transactions?
Which of the following best describes the "ought reasonably to have known" standard in the context of reporting suspicious transactions?
What is the primary objective of the Financial Intelligence Centre (FIC) in the context of the provided information?
What is the primary objective of the Financial Intelligence Centre (FIC) in the context of the provided information?
Study Notes
Asset Freezing Protocol
- Institutions must freeze assets immediately upon the issuance of an asset freeze directive.
- Notification to the Financial Intelligence Centre (FIC) is required within three business days.
- The freeze remains effective until revoked by the FIC or a court orders release.
Types of Reports to FIC
- Activity Reports:
- Suspicious Activity Report (SAR)
- Terrorist Financing Activity Report (TFAR)
- Transaction Reports:
- Suspicious and Unusual Transaction Report (STR)
- Terrorist Financing Transaction Report (TFTR)
- Cash Threshold Reports:
- Cash Threshold Report (CTR)
- Series of Aggregated Transactions Report (CTRA)
Reporting Obligations
- Suspicious Transactions:
- Report if a person knows or ought to have known about suspicious activities.
- Applies even if a business transaction was declined due to suspicious circumstances.
- Cash Threshold Reports:
- Must report transactions over R49,999.99 within three days.
- Includes both payments made to and received from the client or their representatives.
Cash Definition
- Defined as legal tender coin and paper money, as well as traveler's cheques.
Terrorist Property Reports
- Section 28A mandates reporting if an accountable institution possesses property from a sanctioned entity, regardless of activity related to said property.
Submission Process
- Reports are submitted via the GOAML online platform to the FIC.
- Reports can also be sent electronically by registered persons.
Handling Investigated Transactions
- Suspicious transactions should be delayed if possible without informing the client.
- If not delayable, approval from senior management and the Money Laundering Reporting Officer is necessary.
- Continuing transactions related to properties reported in a Terrorist Property Report is an offense.
Confidentiality Obligations
- Individuals submitting reports cannot inform anyone, including the client, about the report's contents or existence.
- Disclosure is only allowed under specific legal circumstances, such as legal proceedings or court orders.
FIC Reports Register
- All investigations and submitted transactions must be logged in an FIC Reports register.
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Description
Test your knowledge on the asset freezing protocol, including institutions' obligations and reporting requirements to the Financial Intelligence Centre (FIC).
