Supervisory Information
The function of the FSCA is defined in the Financial Sector Regulation Act, No 9 of 2017 (FSRA). The FSCA will further continue to supervise financial institutions in terms of the following Acts (Financial Sector Laws).
The FSCA and the financial sector laws empower the FSCA to make conduct standards. The FSCA and the Prudential Authority may make joint standards on matters of common interest. We may issue guidance notices and interpretation rulings.
Money Laundering
Money Laundering is the process used by criminals to hide, conceal or disguise the nature, source, location, disposition or movement of the proceeds of unlawful activities or any interest which anyone has in such proceeds.
Criminals who have generated an income from their criminal activities usually follow three common stages to launder their money. The first stage is commonly referred to as ‘placement’. This is when criminals introduce their illegally derived proceeds into legitimate financial systems. An example of this would be splitting a large portion of cash into smaller sums and thereafter depositing the smaller amounts into a bank account.
The second stage is called ‘layering’. During this stage the launderer engages in a series of transactions, conversions or movements of the funds in order to cloud the trail of the funds and separate them from their illegitimate source. The funds might be channeled through various means, for example the purchase and sale of financial products.
The third stage is ‘integration’. This generally ensues the successful stages of placement and layering. The launderer at this stage causes the funds to re-enter the economy and appear to be legitimate. The launderer might choose to invest the funds into real estate, luxury assets, or business ventures.
Although use of all three stages is common, it is not always utilised by the criminal who wishes to launder funds. In some instances, criminals may choose to merely ‘place’ the illegally derived funds into the economy by simply depositing the money into his or her bank account, without any layering occurring. They can withdraw the money and spend it at their will.
Financing of terrorism
Financing of terrorism is the collection or provision of funds for the purpose of enhancing the ability of an entity or anyone who is involved in terrorism or related activities to commit an act that is regarded as a terrorist act. Funds may be raised from legitimate sources, such as personal donations and profits from businesses and charitable organisations, as well as from criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion.
Terrorists and their funders generally require anonymity and often use strategies that are similar to those employed by money launderers to hide their money flows. However, there is a key difference between the two concepts: Money laundering involves property that is tainted by its criminal origin while financing of terrorism focuses on property that is tainted by its intended application.
Terrorist activity is defined in POCDATARA. In addition, the UNSC also identifies persons and entities involved in terrorism.
Proliferation of financing of weapons of mass destruction
Proliferation financing is the provision of funds or financial services used for the manufacturing, acquisition, possession, or dealing with nuclear, chemical or biological weapons in contravention of national laws or, where applicable, international obligations.
Proliferation financing, like terrorist financing, is focused on the intended application of funds or economic support, regardless of whether or not it involves proceeds of crime.
The UNSC also identifies persons, entities and countries involved in proliferation of financing.
Domestic AML/CFT/CPF Regulatory Regime
The FIC Act together with POCA, the Prevention and Combatting of Corrupt Activities Act, 2004 (PRECCA) and POCDATARA were introduced to combat money laundering, terrorist financing and proliferation financing.
The FIC Act introduces a regulatory framework of measures requiring certain categories of business (accountable institutions) to mitigate ML/TF/PF risks. Accountable institutions include, inter alia an authorised user of an exchange, a collective investment scheme manager and a financial services provider. Accountable institutions are required to take steps regarding customer due diligence, record-keeping, reporting of information to the FIC and governance. The FIC Act is also supported by the Money Laundering and Terrorist Financing Control Regulations.
The 2017 amendments to the FIC Act introduced a risk-based approach to customer due diligence. This means that Accountable Institutions should conduct enhanced due diligence for higher risk clients and simplified due diligence for lower risk clients. The FIC Act was most recently amended through the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Amendment Act, No 22 of 2022, published on 29 December 2022 in Government Gazette 47815 (www.gpwonline.co.za). These most recent amendments were required to remediate technical compliance deficiencies identified in South Africa’s AML/CFT/CPF regime during the mutual evaluation of South Africa by the Financial Action Task Force (FATF) and all accountable institutions are required to be knowledgeable of and accordingly comply with these amendments. See below the link to the media statement issued by the National Treasury on 06 January 2023 in respect of these amendments:
Media Statement - Enactment of Key Anti-Money Laundering and Combating of Terror Financing Laws
On a high level, the most recent amendments to the FIC Act relate to, inter alia, the following:
- Definition of beneficial ownership (section 1 of the FIC Act)
- Definition of domestic politically exposed person (section 1 of the FIC Act)
- Definition of foreign politically exposed person (section 1 of the FIC Act)
- Definition of prominent influential person (section 1 of the FIC Act)
- Definition of proliferation financing / financing activity (section 1 of the FIC Act)
- Provide for additional and ongoing due diligence measures (sections 21B and 21C of the FIC Act)
- Provide for the process followed where there are doubts about the veracity of information (section 21D of the FIC Act)
- Align provisions of schedule amendments (schedule 3A and 3B) as distinct from prominent influential persons (schedule 3C) (sections 21F, 21G, 21H, 79A, 79B and 79C of the FIC Act)
- Provide for provision related to United Nations Security Council (UNSC) Resolutions (sections 26A, 26B, 26C, 28A, 34 and 35 of the FIC Act)
- Risk management and compliance programme (section 42 of the FIC Act)
- Offences and provisions to impose administrative sanctions (sections 49A, 50, 52, 57, 59 and 64 of the FIC Act)
Refer to the link below for access to the General Laws Amendment Act No 22 of 2022:
https://www.gov.za/documents/general-laws-anti-money-laundering-and-combating-terrorism-financing-amendment-act-22-2022
The Schedules to the FIC Act were also amended in December 2022. New sectors previously not designated as accountable institutions are now included. Accountable institutions must ensure that they are appropriately registered with the FIC on its goAML system under the correct Schedule items and that in some instances, an accountable institution is required to register under more than one Schedule item. Refer below to the media release issued by the FIC in this regard as well as the latest FIC Act Schedules:
GOVERNMENT GAZETTE 47596 - 29 NOV 2022 (PDF, 228KB)
MEDIA RELEASE - SCHEDULE AMENDMENTS (PDF, 137KB)
Financial Intelligence Centre
The FIC uses financial data reported to it and other available data to develop financial intelligence, which it is able to make available to the competent authorities i.e. law enforcement agencies, South African Revenue Services and supervisory bodies for follow-up with investigations or to take administrative action.
Refer to the link below for access to the official website of the FIC:
https://www.fic.gov.za/Pages/Home.aspx
The Financial Sector Conduct Authority
The FSCA is responsible to supervise and enforce compliance with the FIC Act by authorised users of an exchange, collective investment scheme managers and financial services providers. The FSCA has delegated its obligation to supervise authorised users to the licensed exchanges. The FSCA may, however, still take enforcement action against authorised users. The FSCA conducts FIC Act supervision and enforcement on a risk-based approach. Supervisory activities include offsite supervision such as issuing directives to provide information and compliance returns as well as onsite supervision such as scoped onsite inspections and thematic reviews. The FSCA is also required to assist accountable institutions to improve their level of compliance through raising awareness. Awareness is raised by the FSCA through, for example, webinars, issuing communication and surveys.
The FSCA established a dedicated AML / CFT Supervision department to carry out the responsibilities of the FSCA as a supervisory body.
Contact the AML/CFT Supervision Team:
- Charl Geel: 012 367 7890 or charl.geel@fsca.co.za
- Michele Fourie: 012 367 7293 or michele.fourie@fsca.co.za
- Kgomotso Molefe: 012 367 7197 or Kgomotso.molefe@fsca.co.za
- Mpho Radebe: 012 422 2848 or mpho.radebe@fsca.co.za
Financial Action Task Force
The FATF is an inter-governmental body that focuses exclusively on combatting money laundering and funding terrorism. FATF is essentially a policy-making and standard setting body that promotes policies to combat money laundering and terrorist financing. South Africa is a member of FATF. In addition, it is also a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), a regional body of the FATF which aims to support countries in the region to implement the global AML/CFT standards. The FSCA forms part of South Africa's delegation that attends FATF and ESAAMLG plenaries and aims to align its policies and process with the standards set by the FATF.
Refer to the link below for access to the official website of the FATF:
https://www.fatf-gafi.org/en/home.html
Refer to the link below for access to the official website of ESAAMLG:
https://www.esaamlg.org/
Grey listing
FATF issues statements where it identifies countries that are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring (also known as grey listing), it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring.
The FATF published their decision to include South Africa on its grey list on 24 February 2023. On even date, the FSCA and other supervisory bodies published related communication. The FSCA stands firm in its efforts to ensure a swift resolution of remaining deficiencies identified by the FATF and to help expedite the country's exit from the grey list. The FSCA will continue to develop and publish tools to assist the relevant sectors to improve their level of compliance. The FSCA will use the following methods to achieve this:
- Review and publish the AML / CFT Body of Knowledge
- Publication of CPD-accredited webinars and newsletters
- Presentations at face-to-face engagements with the industry
- Facilitating think-tanks where the industry can discuss complex matters to find solutions by the industry, for the industry
- Conducting offsite supervision
- Conducting onsite inspections in terms of a risk based approach
- Conducting supervisory engagements, particularly with groups
- Frequent engagements with industry bodies to share information and discuss matters of mutual concern
- Stay abreast of international AML / CFT developments
- Collaborate with the FIC and SARB:PA on AML / CFT matters
- Issue dissuasive and proportionate sanctions for non-compliance with the FIC Act
Communication issued in relation to the grey listing:
PRESS RELEASE - FATF GREYLISTING FSCA (PDF, 122KB)
| 4.4.1 Sector Risk Assessment - Short Version 31 May 2019 | |
| FSCA Sector Risk Assessment CIS Financial Advisory and Intermediary Services Sectors - April 2018 to December 2020 (April 2022) final | |
| Securities Sector Risk Assessment Report April 2018 to December 2020 (February 2022) |
| 2011 - Binder Regulations | |
| 2011 - Insurance Groups | |
| 2011 - Intermediary Services and Related Remuneration | |
| 2011 - Microinsurance | |
| 2011 - Microinsurance in SA Implementation | |
| 2011 - Program | |
| 2011 - Regulatory Overview | |
| 2011 - Regulatory Projects | |
| 2011 - Risk Based Supervision | |
| 2011 - SAM Update | |
| 2011 - Treating Customers Fairly (TCF) | |
| 20110713LT2011Guidancemanualfinalversion2 | |
| 20110713LTQuarterly2011version2 | |
| 20111212_LT2011_qualitative_proposal_final_version_2 | |
| 20111212_LT2011_quantitative_proposal final_version_2 | |
| 2012 - FINAL Program 22 November 2012 Ins Regulatory Seminar | |
| 2012 - Regulatory Seminar 2012- Regulatory Projects (v1) | |
| 2012 - Regulatory Seminar -Overview | |
| 2012 - TCF pres for Insurance Regulatory Seminar Nov 2012 | |
| Cell Captive Review | |
| IAN PTA 22 Nov 2012 Insurance Seminar - SAM Project Update | |
| Regulatory Seminar - Binder Implementation (JD approved) | |
| Regulatory Seminar - Intermediary services and related remuneration | |
| Regulatory seminar - Outsourcing Directive |
| Amendment Notices GCoC and QEC for Approval as Compliance Officer (Parliament pack) | |
| Amendments to FSRA Conduct Standard 1 of 2019 (PFA) | |
| Conduct Standard - Delegation CIS (Parliament pack) | |
| Conduct Standard for Banks (Parliament pack) | |
| Conduct Standard on Net Asset Valuation Calculation and Pricing for CIS Portfolios (Parliament pack) | |
| Conduct Standard-Conditions for investment in derivative instruments (Parliament Pack) | |
| Conduct Standard-Minimum skills_training (Parliament Pack) | |
| Conduct Standard-Payment of pf contributions (Parliament Pack) | |
| Conduct Standard-Requirements relating to third party cell captive insurance business (Parliament Pack) | |
| Conduct Standard-Smoothed Bonus Policies (Parliament Pack) | |
| Draft amendments to Joint Standard 2 of 2020-Margin Requirements (Parliament Pack) | |
| Draft Joint Standard X of 2023 - Cybersecurity and Cyber Resilience Requirements for financial institutions (Parliament Pack) | |
| Draft Joint Standard X of 2023-IT Governance and Risk Management (Parliament Pack) | |
| FAIS GCOC_SCOC ST DEPOSITS_FandP amendments (Parliament pack) | |
| Joint Standard X of 2024 Outsourcing by Insurers (Parliamentary Pack) | |
| Prudential Standard X of 2024 - Regulation 28 Quarterly Reporting Requirements for Pension Funds |
| Consent Order - Nongauza N Funeral Services v FSCA | |
| Decision - Allen Vivian Waterston v Altron Group Pension Fund & another | |
| Decision - Felicia Anthia Wilson v PFA & Others | |
| Decision - Gabriella Nonhlanhla Mncube v Emerald Life - FSP75.2023 | |
| Decision - Ganesan Moodley v PFA & Others | |
| Decision - K Mills v Eastern Cape Motors Holdings (Pty) Ltd | |
| Decision - Karen Joy Howard v SA Health Brokers - FSP49.2023 | |
| Decision - Mahomed Balil Ismail v Wesbank a division of FirstRand Bank Limited | |
| Decision - Sebenzile Jane Mtambo v PFA and Others | |
| Decision - Sello Moepye v Discovery Connect Distribution Services | |
| Decision - Suretha Beeputh v FSCA & Capitec Bank | |
| Decision - Thupetsi Phineas Lamola v FNB | |
| Decision - X-Span Logistics CC v PFA | |
| Ruling - L F Nxumalo v FNB |
| NEFG-FSCA Directives - 27 February 2023 | |
| NEFG-Statutory Manager Report - 10 April 2023 | |
| NEFG-Statutory Manager Report - 11 December 2024 | |
| NEFG-Statutory Manager Report - 15 August 2022 | |
| NEFG-Statutory Manager Report - 18 May 2023 | |
| NEFG-Statutory Manager Report - 24 November 2022 | |
| NEFG-Statutory Manager Report - 25 October 2022 | |
| NEFG-Statutory Manager Report - 26 October 2023 | |
| NEFG-Statutory Manager Report - 29 September 2022 | |
| NEFG-Statutory Manager Report - 30 June 2023 | |
| NEFG-Statutory Manager Report - 31 August 2022 | |
| NEFG-Statutory Manager Report - 31 January 2023 | |
| NEFG-Statutory ManagerReport - 28 February 2023 |
| 2023 fsca 3-year regulation plan[v2] | |
| 2024 FSCA 3-year Regulation Plan | |
| FSCA Regulation Plan_1 April 2022 - 31 March 2025 |
| Annexure A to Guidance Note 12 | |
| Application Form | |
| CapitalNotice46207 | |
| FICActReg | |
| Guidance Note 12 | |
| Guidance Note 2A-CIS | |
| Guidance Note no. 1 | |
| Guidance Note no. 10 | |
| Guidance Note No. 10A | |
| Guidance Note No. 11 | |
| Guidance Note no. 2-CIS | |
| Guidance Note No. 6A | |
| Guidance Note no. 8 | |
| Guidance Note no. 9 | |
| Guidance Note no.3 | |
| Guidance Note no.4 | |
| Guidance Note no.5 | |
| Guidance Note no.6 | |
| Guidance Note no.7 |
| FSCA Communication 1 of 2024 (INS) | |
| FSCA Communication 10 of 2024 (RF) | |
| FSCA Communication 11 of 2024 (RF) | |
| FSCA Communication 12 of 2024 (RF) | |
| FSCA Communication 13 of 2024 | |
| FSCA Communication 14 of 2024 (FM) | |
| FSCA Communication 15 of 2024 (FM) | |
| FSCA Communication 16 of 2024 (RF) | |
| FSCA Communication 17 of 2024 (General) | |
| FSCA Communication 18 of 2024 (RF) | |
| FSCA Communication 19 of 2024 (FM) | |
| FSCA Communication 20 of 2024 (General) | |
| FSCA Communication 21 of 2024 (RF) | |
| FSCA Communication 22 of 2024 (RF) | |
| FSCA Communication 23 of 2024 (FAIS) | |
| FSCA Communication 24 of 2024 (RF) | |
| FSCA Communication 25 of 2024 (RF) | |
| FSCA Communication 26 of 2024 (FM) | |
| FSCA Communication 27 of 2024 (RF) | |
| FSCA Communication 28 of 2024 (RF) | |
| FSCA Communication 29 of 2024 (RF) | |
| FSCA Communication 3 of 2024 (RF) | |
| FSCA Communication 30 of 2024 (CIS) | |
| FSCA Communication 31 of 2024 (RF) | |
| FSCA Communication 32 of 2024(RF) | |
| FSCA Communication 33 of 2024 (RF) | |
| FSCA Communication 34 of 2024 (FAIS) | |
| FSCA Communication 35 of 2024 (RF) | |
| FSCA Communication 36 of 2024 (GENERAL) | |
| FSCA Communication 37 of 2024 (RF) | |
| FSCA Communication 38 of 2024 (FAIS) | |
| FSCA Communication 39 of 2024 (AMLCFT) | |
| FSCA Communication 4 of 2024 (RF) | |
| FSCA Communication 40 of 2024 (AMLCFT) | |
| FSCA Communication 5 of 2024 (CIS) | |
| FSCA Communication 6 of 2024 (INS) | |
| FSCA Communication 7 of 2024 (RF) | |
| FSCA Communication 8 of 2024 (CIS) | |
| FSCA Communication 9 of 2024 (GENERAL) | |
| Joint Communication 1 of 2024 | |
| Joint Communication 2 of 2024 | |
| Joint Communication 3 of 2024 | |
| Joint Communication 4 of 2024 | |
| Joint Communication 5 of 2024 | |
| Joint Communication 6 of 2024 | |
| Joint Communication 7 of 2024 |
| FSCA INTERPRETATION RULING 1 OF 2020 (RF) and FSCA COMMUNICATION 10 OF 2020 (RF) | |
| FSCA Interpretation Ruling 1 of 2024 RF, Consultation Report and FSCA Communication 7 of 2024 |
List of Acts administered by the Financial Sector Conduct Authority
- Collective Investment Schemes Control Act (Act 45 of 2002)
- Credit Rating Services Act (Act 24 of 2012)
- Financial Advisory and Intermediaries Services Act (FAIS Act)(Act 37 of 2002)
- Financial Institutions (Protection of Funds) Act (Act 28 of 2001)
- Financial Intelligence Centre Act (Act 38 of 2001)
- Financial Markets Act (Act 19 of 2012)
- Financial Sector and Deposit Insurance Levies
- Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums
- Financial Sector Regulation Act (Act 9 of 2017)
- Friendly Societies Act (Act 25 of 1956)
- Insurance Act (Act 18 of 2017)
- Long-term Insurance Act (Act 52 of 1998)
- Pension Funds Act, 24 (Act 24 of 1956)
- Short-term Insurance Act (Act 53 of 1998)
Warning!!
The Financial Sector Conduct Authority does not guarantee that the Acts displayed on this website reflect the most recent version of those Acts after any possible amendments.
The FSCA is not liable for any loss sustained or prejudice caused by a disregard of this warning.
| FBS Consent Form | |
| FSCA CIS Notice 1 of 2024 | |
| FSCA CIS Notice 2 of 2024 and FSCA Communication 5 of 2024 | |
| FSCA CRA Notice 1 of 2024 | |
| FSCA FAIS Notice 9 of 2024 | |
| FSCA FAIS Notice 1 of 2024 | |
| FSCA FAIS Notice 10 of 2024 | |
| FSCA FAIS Notice 11 of 2024 | |
| FSCA FAIS Notice 12 of 2024 | |
| FSCA FAIS Notice 13 of 2024 | |
| FSCA FAIS Notice 14 of 2024 | |
| FSCA FAIS Notice 15 of 2024 | |
| FSCA FAIS Notice 16 of 2024 | |
| FSCA FAIS Notice 17 of 2024 | |
| FSCA FAIS Notice 18 of 2024 | |
| FSCA FAIS Notice 2 of 2024 | |
| FSCA FAIS Notice 3 of 2024 | |
| FSCA FAIS Notice 4 of 2024 | |
| FSCA FAIS Notice 5 of 2024 | |
| FSCA FAIS Notice 6 of 2024 | |
| FSCA FAIS Notice 69 of 2018 | |
| FSCA FAIS Notice 7 of 2024 | |
| FSCA FAIS Notice 8 of 2024 | |
| FSCA FAIS Notices 4 of 2025 | |
| FSCA Information Request 1 of 2024 (INS) | |
| FSCA INS Notice 1 of 2024 | |
| FSCA INS Notice 2 of 2024 | |
| FSCA RF Notice 1 of 2024 | |
| FSCA RF Notice 2 of 2024 | |
| FSCA RF Notice 3 of 2024 | |
| IE Section (9)(4) Notice of Amendment ( Address Change) - Published 28 January 2024 on City Press | |
| IE Section (9)(4) Notice of Amendment ( Address Change) - Published 29 January 2024 on Business day | |
| Notice Retirement Funds | |
| Notices |
| FSCA Transformation Strategy | |
| Joint Roadmap for the development of a regulatory framework for Central Clearing in SA | |
| Policy Document supporting the Declaration of crypto assets as a financial product | |
| Position paper Conduct policy proposals applicable to Third party Cell Captive Insurance 11 December 2019 | |
| Roadmap for the development and implementation of the Omni-CBR |
| Ashburton Fund Managers (Pty) Ltd Notice of Sanction | |
| Du Toit Advisers CC Sanction Notice | |
| FSCA Communication 17 of 2024 (General) | |
| FSCA Communication 20 of 2024 (General) | |
| FSCA Communication 39 of 2024 (AMLCFT) | |
| FSCA Communication 40 of 2024 (AMLCFT) | |
| FSP 32190 Sunlight Financial Services (Pty) Ltd - Notice of Sanction 030724 (002) | |
| Mika Finansiele Dienste (Pty) Ltd FSP 2046 Notice of Sanction 05062024 (004) |
| NEFG-FSCA Directives - 27 February 2023 | |
| NEFG-Statutory Manager Report - 10 April 2023 | |
| NEFG-Statutory Manager Report - 11 December 2024 | |
| NEFG-Statutory Manager Report - 15 August 2022 | |
| NEFG-Statutory Manager Report - 18 May 2023 | |
| NEFG-Statutory Manager Report - 24 November 2022 | |
| NEFG-Statutory Manager Report - 25 October 2022 | |
| NEFG-Statutory Manager Report - 26 October 2023 | |
| NEFG-Statutory Manager Report - 29 September 2022 | |
| NEFG-Statutory Manager Report - 30 June 2023 | |
| NEFG-Statutory Manager Report - 31 August 2022 | |
| NEFG-Statutory Manager Report - 31 January 2023 | |
| NEFG-Statutory ManagerReport - 28 February 2023 |