IDA – What you need to know about the FIC Amendment Act
What you need to know about the FIC Amendment Act
It is hard to believe that the first half of this year is already done and dusted!
And what a six-months it’s been. Figures released recently show that we are indeed in a recession, and that consumer confidence is at an all-time low. The outlook for the second half of year also remains uncertain. A flicker of good news is that the fuel price has dropped substantially – let us hope that this will have an impact on vehicle sales.
Financial Intelligence Centre (FIC) Amendment Act
By now you would have heard that the Minister of Finance has signed and gazetted various provisions of the Financial Intelligence Centre Amendment Act and, although the signing was a big step forward, there is more work to be done by industry.
The Financial Intelligence Centre has begun a process of reviewing the amendments. One of this is the amendments to Schedules 1, 2 and 3 of the Act. A notice in this regard was published on the FIC’s website (click here). As indicated in this notice, the process of amending the Schedules to the Act will start soon. This will widen the application of the Act by including additional categories of institutions under the scope of accountable institutions.
Severe impact on our compliance requirements
Now you might think ‘this has nothing to do with me, I’m just buying and selling cars to earn an honest living’. Well, the IDA, as a recognised, accredited Motor Industry Body, has been invited to attend a consultative meeting with the FIC to discuss the impact of this legislation on our industry. The proposal is to shift us, as Motor Dealers, from Schedule 3, reporting institutions to Schedule 1, accountable institutions.
This, in my mind, will have a severe impact on our compliance requirements, not to mention the ever-increasing cost of compliance.
We will engage with other industry bodies and the FIC on this issue and will keep you, our valued member, updated on our progress.
Until then, many happy sales and deliveries!
General Manager: IDA