New cash threshold reporting required for casinos, motor vehicle dealers and attorneys
From Monday, 4 October 2010 casinos, motor vehicle dealers and attorneys are obliged to report cash transactions of R25 000 or more to the Financial Intelligence Centre (FIC). A notice to this effect was placed in the Government Gazette on Friday, 1 October 2010.
Called cash threshold reporting or CTR, the new reporting obligation is being implemented as part of the FIC’s mandate to identify the proceeds of crime and combat criminal money being laundered into the South African economy. The three sectors that are impacted at this stage – casinos, motor vehicle dealers and attorneys – have been part of an ongoing testing and development process with the FIC.
From 1 December 2010, the CTR obligations will apply also to dealers in Kruger Rands, as well as financial and other institutions such as banks, insurers, dealers in foreign exchange, financial advisors and estate agents.
Says the FIC’s director, Murray Michell: “CTR is a new tool geared to help law enforcement authorities detect and monitor criminal activity in the movement of money in our financial system.
“With this reporting mechanism in place criminals will encounter greater difficulty in laundering illicit funds into financial institutions, which will go a long way toward strengthening the integrity of our economy.”
To ease the CTR reporting process, the FIC has introduced a range of electronic reporting mechanisms, including an internet-based reporting system. These mechanisms will enable all participating industries and institutions to submit reports electronically using login credentials acquired from the FIC.
Commented Michell: “The electronic reporting system will reduce reporting costs and save time.”
Applications for the login credentials and CTR reporting tools are available on the FIC’s web site:
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Note to editors: The Financial Intelligence Centre (FIC) was established in 2003, through the promulgation of the Financial Intelligence Centre Act 38 of 2001, with the purpose of identifying the proceeds of unlawful activities and combating money laundering and terror financing. The organisation collects and analyses data sourced from accountable institutions and, where necessary, provides this analysis to law enforcement authorities, the South African Revenue Service and intelligence agencies for further follow up. The FIC works closely with counterparts on the African continent and international organisations. As part of its mandate, the organisation promotes awareness of the threat of money laundering and terror financing. Simultaneously it enhances levels of business compliance and reduces the possibility of financial institutions being exploited by criminal networks, which is core to enhancing the integrity of the country’s financial system.
Issued by the Financial Intelligence Centre
For more information please contact: Head of Communication, Panna Kassan on +2712 641 6000 or Lerato Nkosi on: +2712 641 6000; 072 634 8400 or
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