Back to Legislative Guidelines
Legislative Guidelines

The Financial Intelligence Centre Act of 2001 and Cash Threshold Reporting

When does the reporting obligation arise for an accountable or reporting institution?

There are two types of institutions that have an obligation to report cash deposits:

  1. Accountable institutions listed in Schedule 1 of the Act such as attorneys.
  2. Reporting institutions listed in Schedule 3 of the Act.

 

Both accountable and reporting institutions have an obligation to report a transaction in which cash in excess of the prescribed amount has either been paid by the institution to the client (or his/her representative) or paid by the client (or his/her representative) to the institution.  

The Financial Intelligence Centre issued a Guidance Notice in respect of Cash Threshold Reporting to them which incorporates AMENDEMENTS TO MONEY LAUNDERING AND TERRORIST FINANCING CONTROL (GG47302) which took effect on 14 November 2022.

Key changes are:

The cash threshold amount has been increased from R24 999.99 to R49 999.99. This includes a series of cash transactions. A report must be made as soon as possible but no later than three business days instead of two business days as was previously the case. 

These provisions kicked in on 14 November 2022. Any outstanding reports that were due before the commencement date will need to be submitted based on the provisions applicable before the amendments, as the amendments do not take retrospective effect.  

The nature of the provisions appears to “relax” the current provisions. It appears that this is a measure to reduce reports – the FIC received 4.5 million reports for the 2021/22 financial year. This however does not change the duty of accountable institutions to report suspicious and unusual transactions. It’s an approach that seems to focus not just on a regulatory approach but a risk-based one.

Recommended for you

Minors and immovable property
Legislative Guidelines

Caveats and Endorsements Noted Against a Property[post_view before=""]

Conveyancers are keen investigators, they are specialists in their field as they exercise knowledge and skill in all of the transactions. Although every transaction might be different, the principles remain the same.

Read More
Minors and immovable property
Legislative Guidelines

A Bird’s View on the Case of Werner and Werner V Paula Barnard N.O. And Others and the Battle of Vacant Possession[post_view before=""]

This article discusses the voetstoots clause. Be careful of what you litigate for and against whom, for you might not always get what you ask for. Do not act in the heat of the moment, without the proper consideration of all the facts. Do your homework and choose your attorneys carefully to apply their minds and the law. This case is a classic example of the consequences of the wrong legal advice and strategy.

Read More
Transfer and Bond Calculators
Legislative Guidelines

Is the Landlord’s Right to Rental Income Adequately Protected Under South African Law[post_view before=""]

Under South African Law, the rights of the landlord/lessor to receive rent from their tenants is adequately protected. If the landlord fulfils his duties according to the lease agreement, there is no reason why a tenant should not pay their rent.

Read More
Properties using borehole water must display a sign
Legislative Guidelines

Environmental Law: Water Rights & Water Pollution in South Africa[post_view before=""]

South Africa is a relatively water-scarce country. The regulation and implementation of water use is therefore very important.

Read More
Minors and immovable property
Legislative Guidelines

Legal rights of homeowners during the repossession process[post_view before=""]

November 2021, January 2022, September 2022, and November 2022 were pivotal months for many homeowners in South Africa who were forced to revaluate their financial positions with the interest rate increases.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

Legislative Guidelines

The Financial Intelligence Centre Act of 2001 and Cash Threshold Reporting

When does the reporting obligation arise for an accountable or reporting institution?

There are two types of institutions that have an obligation to report cash deposits:

  1. Accountable institutions listed in Schedule 1 of the Act such as attorneys.
  2. Reporting institutions listed in Schedule 3 of the Act.

 

Both accountable and reporting institutions have an obligation to report a transaction in which cash in excess of the prescribed amount has either been paid by the institution to the client (or his/her representative) or paid by the client (or his/her representative) to the institution.  

The Financial Intelligence Centre issued a Guidance Notice in respect of Cash Threshold Reporting to them which incorporates AMENDEMENTS TO MONEY LAUNDERING AND TERRORIST FINANCING CONTROL (GG47302) which took effect on 14 November 2022.

Key changes are:

The cash threshold amount has been increased from R24 999.99 to R49 999.99. This includes a series of cash transactions. A report must be made as soon as possible but no later than three business days instead of two business days as was previously the case. 

These provisions kicked in on 14 November 2022. Any outstanding reports that were due before the commencement date will need to be submitted based on the provisions applicable before the amendments, as the amendments do not take retrospective effect.  

The nature of the provisions appears to “relax” the current provisions. It appears that this is a measure to reduce reports – the FIC received 4.5 million reports for the 2021/22 financial year. This however does not change the duty of accountable institutions to report suspicious and unusual transactions. It’s an approach that seems to focus not just on a regulatory approach but a risk-based one.