Page 92 - Profile's Unit Trusts & Collective Investments - March 2026

Chapter 5 Legislation and guidelines

Are you an “accountable institution”?
FICA lists a number of accountable institutions. One of them is “A person who carries on the
business of rendering investment advice or investment broking services, including a public
accountant as defined in the Public Accountants and Auditors Act 80 of 1991, who carries on
such a business.”

monetary award as compensation for damages suffered, provided this does not exceed the limit on
awards. This amount was set in the rules on proceedings under the FAIS Act in 2003 at R800 000.
In July 2024 this amount was increased for the first time in two decades to R3.5m when the
Ombud Council Rules for the Ombud for Financial Services (FAIS Ombud) were published in terms
of FSR Act. The Ombud may also order the FSP or representative to take specific action in relation
to a complaint.
Any determination made by the Ombud must, of course, be reduced to writing, and must include
reasons for the decision. The Ombud may grant leave to appeal, and such appeals will be heard by
the Financial Services Tribunal.

Financial Intelligence Centre Act (FICA)
The Financial Intelligence Centre Act (FICA) establishes South Africa’s framework for combating
money laundering, terrorist financing, and related financial crimes. Collective investment scheme
managers and financial advisers are classified as accountable institutions under FICA and are
subject to extensive compliance obligations.
FICA was promulgated in December 2001 and came into effect from July 2003. This Act was
introduced after SA became a signatory to the United Nations Convention on Transnational
Organised Crime (UNTOC) in December 2000.
The Act imposed a range of duties on accountable institutions to monitor clients and transactions
in order to prevent money laundering activities.
FICA complements the Prevention of Organised Crime Act (POCA) which specifically criminalises
money laundering. POCA, however, does not place any know your client (KYC) or reporting
obligations on banks or other entities which may be used by criminals in money laundering (ML) or
terrorist funding (TF) activities. These requirements were introduced under FICA.
The original FICA has been amended a few times to ensure South African money laundering
legislation remains in line with international best practice. Recent amendments have been aimed
at ensuring FICA is in line with recommendations of the Financial Action Task Force (FATF), an
initiative of the G7, based in Paris, and aimed at combatting money laundering, terrorist financing
and finance for weapons of mass destruction.
In 2023 the FATF put SA on its grey list as its money laundering and anti-terrorism financing
measures were below international standards. The country was removed from the list in October
2025 after making several amendments to FICA and othe measures to enhance monitoring and
prosecution of financial crimes.
Accountable institutions
FICA defines a broad range of entities involved in financial transactions as accountable institutions.
The list includes – amongst others – banks, real estate agents, investment managers (including
collective investment schemes), forex dealers, casinos, attorneys, long term insurers, stockbrokers
and crypto asset service providers. .
In December 2022 the range of accountable institutions was broadened to include more credit
providers, dealers in high-value goods (over R100 000), people who assist in setting up companies
local or foreign companies, people (including trustees) who assist in setting up trusts, the South
African Mint Company, crypto-asset service providers, informal money or value transfer providers
(hawaladars), and payment clearing service operators.
Motor vehicle dealers and dealers in Kruger Rands that were previously reporting institutions only
are now also accountable institutions.

90 Profile’s Unit Trusts & Collective Investments March 2026