IEASA National - News

Have you updated your FICA Manual?   Article Date :4 Jul 2005 Principals - FICA Compliance Manual must include the new reporting requirements introduced on 20 May. Principals - have you updated your FICA Compliance Manual to include the new reporting requirements introduced on 20 May? You need to: your estate agency is now part of the fight against terrorism. Since 2003, estate agency firms have been required to implement the Financial Intelligence Centre Act (FICA), to have a manual of procedures for staff and agents to follow, and to appoint an in-house compliance officer to make sure that everyone follows the procedures and keeps the required records. One of the procedures which you must follow is to report to the FIC any property sale or lease which you know or suspect is "suspicious or unusual" in that it's being used to launder money or to evade paying tax or transfer duty or stamp duty. In terms of the Schedule to the recently introduced Protection of Constitutional Democracy Against Terrorist and Related Activities Act (POCDATARA), you must now also report to the FIC any property transaction which you know or suspect may be connected with "terrorist activity". As defined in the Act, terrorist activity includes not only violence, bombings and hostage-taking, but also interfering with electronic systems, damaging the economy, advancing harmful political, religious, ideological or philosophical causes, and destroying or substantially damaging property which is part of the cultural heritage. If you discover that a property which you control or are managing has become " associated with terrorist or related activities", you must submit the report within five days of discovering the fact. If you are involved in a property transaction and discover or suspect that the property is associated with terrorist or related activities, or is to be paid for with the proceeds of such activities, you must report it within fifteen days. The definition of "property" includes not only immovable property, but also property rights, interests in property, and the proceeds thereof. As before, you must submit any report electronically through the FIC website (www.fic.gov.za) or, if you do not have the facilities for this, then you must fill in the report form which was recently published in Government Gazette 27580 dated 20 May 2005 (also available from the FIC website). If you fail to report your knowledge or suspicions, and the property does indeed turn out to be associated with terrorism, you could potentially be charged with supporting terrorism, which carries a 15-year prison sentence. We recommend that you make the necessary changes to your compliance procedures and manual without delay. No doubt, the Estate Agency Affairs Board will issue an update to its FICA Best Practice Guidelines in due course. CLICK HERE TO RETURN TO THE MAIN NEWS PAGE