ESTATE AGENCIES – You have been Warned: R7.8m penalty stands as law firm loses FIC appeal, heads to court: [an extract from an Article by: Moneyweb 13 Nov 2024]
The Financial Intelligence Centre (FIC) appeal board dismissed an appeal lodged by Kunene Ramapala Incorporated, a firm of attorneys, after it received a R7.8 million penalty for non-compliance.
The law firm is now instituting a review application in the High Court against the FIC’s appeal board’s decision to reject its appeal.
Failure to comply
In June 2023, the FIC inspected Kunene Ramapala Inc. It was found that the firm did not comply with the FIC Act’s requirements to document, maintain, and implement a risk management and compliance programme and scrutinise clients against the targeted financial sanctions list.
In addition, the firm failed to comply with directives, including failure to update its registration details, as well as neglecting to file a risk and compliance return questionnaire within a specific timeframe.
The FIC determined that the firm was grossly negligent and consequently instituted a financial penalty of R7.8 million on four instances of compliance negligence.
Appeal rejected
The FIC’s appeal board found that the appellant was aware of its compliance obligations and that the institution had acted with gross negligence and wilfully failed to comply with its obligations under the FIC Act.
… “The outcome of this appeal is a clear message that non-compliance … may have serious consequences,”
The Original, Full Article can be Viewed here → https://www.moneyweb.co.za/news/south-africa/r7-8m-penalty-stands-as-law-firm-loses-fic-appeal-heads-to-court/