Regulatory Alerts2022-05-03
Immediate Outcome 4 Communication to All Accountable Institutions April 2022
The Financial Sector Conduct Authority issued this April 2022 communication to non-bank financial institutions regarding the Financial Action Task Force's 'moderate' rating for South Africa's Immediate Outcome 4 on preventive measures. The document outlines critical deficiencies in risk understanding, customer due diligence, and reporting obligations, warning that failure to remediate these issues by October 2022 could result in South Africa being grey-listed. Institutions are required to transition from a compliance-driven to a risk-based approach, update their Risk Management and Compliance Programmes, and utilize provided regulatory resources to address these gaps.
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