Enoch Godongwana, Minister of Finance, has formally decreed that the operative status of sections 6 and 43 of the Financial Intelligence Centre Amendment Act, 2017 (Act no 1 of 2017), will commence as of the 18th of August 2023.
Section 6 of the Financial Intelligence Centre Amendment Act of 2017 introduces a profound shift in our approach towards combating the intricate web of money laundering, the financing of terrorist activities, and associated financial sanctions. This pivotal segment brings to the forefront a comprehensive framework of control measures designed to thwart these illicit activities. By interweaving financial vigilance and stringent oversight, Section 6 not only fortifies the security of our financial sector but also sends a resolute message that such harmful endeavors will not find refuge within our economic realm.
Section 43, on the other hand, pertains to the substitution of an existing section in the Act, specifically section 56. This substitution introduces significant changes related to the reporting of electronic transfers and the consequences for non-compliance.
The revised Section 56 underscores the importance of timely and accurate reporting of electronic money transfers to the Centre, as stipulated by Section 31. Failure to comply with this obligation now bears serious consequences. Subsection (1) of the amended provision establishes that an accountable institution failing to report the prescribed information pertaining to electronic money transfers commits an offence. This underscores the gravity of ensuring that financial institutions adhere to their reporting obligations, emphasizing the critical role these reports play in curbing potential financial misconduct.
Furthermore, Subsection (2) emphasizes that non-compliance in reporting electronic transfers is met with administrative sanctions. By imposing such measures, this amendment strengthens the mechanisms through which accountability is upheld and reinforces the necessity of transparent financial practices.
