Cash Threshold Reporting Obligations Imposed by FICA

On 9 September 2010 the Financial Intelligence Centre confirmed that the cash threshold reporting obligations imposed by the Financial Intelligence Centre Act, 2001 ("FICA") will come into operation this year. This marks yet another step in the Government's plan to implement strict anti money laundering and anti terrorist control measures in South Africa.

Attorneys, motor vehicle dealers and casinos may be required to file cash threshold reports ("CTR's") with the Centre in terms of section 28 of FICA from 4 October 2010. They must report cash transactions (cash includes travellers cheques) above R25 000-00 going through them. Section 28 of FICA was enacted in 2001 but its anticipated date of commencement, at least insofar as attorneys, motor vehicle dealers and casinos are concerned, has been postponed twice.

The Financial Intelligence Centre ("the Centre") has indicated that the remaining accountable institutions and reporting institutions (which include banks, foreign exchange dealers and estate agents) will be required to file CTR's with effect from 1 December 2010. This date coincides with the presently anticipated date of commencement of...