Law firm sanctioned for violating FIC Act
A law firm faces a fine of more than R7.7m for failing to comply with legislation regarding financial information that must be declared to the authorities as part of SA's efforts to get off the international grey list.
The Financial Intelligence Centre (FIC) says the fine is because the firm did not comply with the FIC Act.
An additional R50 000 fine was imposed for their failure to submit the Risk and Compliance Questionnaire (RCR), which the FIC uses to determine which entities pose a higher risk for abuse for money laundering and terrorism financing.
This case is pending after the firm filed an appeal.
City Press reports that the FIC says it has already acted in 202 cases, particularly with law firms and real estate agents who have been slow to submit the risk analyses.
It emerged at the recent Tax Indaba in Cape Town that lawyers, real estate agents, and trusts are not very concerned about the necessary compliance requirements to remove SA from the International Financial Action Task Force grey list.
In June, the FIC warned that those who have not yet submitted the RCRs are considered criminal institutions that are automatically seen as high risk.
They can expect inspection visits and fines or other penalties, the FIC said.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
