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Full glossary Legislation

FICA

Also known as: Financial Intelligence Centre Act, Act 38 of 2001

The Financial Intelligence Centre Act — anti-money-laundering law requiring client identification, record-keeping and reporting.

The Financial Intelligence Centre Act (FICA), Act 38 of 2001, is South Africa’s primary anti-money-laundering and counter-terror-financing law. It places obligations on accountable institutions, including many FSPs.

FICA requires institutions to identify and verify clients (Know Your Customer / KYC), keep records of clients and transactions, appoint a compliance officer, train staff, and report suspicious and certain cash transactions to the Financial Intelligence Centre (FIC).

While FICA is separate from the FAIS Act, RE5 candidates must understand how the two interact — particularly the customer due diligence, record-keeping and reporting duties.

Related terms

Know Your Customer (KYC)The FICA process of identifying and verifying who your client is before doing business with them.Record-KeepingThe legal duty to keep records of advice, transactions and client information for the prescribed period (generally five years).FAIS ActThe Financial Advisory and Intermediary Services Act, 2002 — the law that governs financial advice and intermediary services in South Africa.

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