Regulatory Alerts2020-04-22
Joint Communication 2 of 2020: Covid-19 Supervisory Response
Issued by South African financial regulators, this communication directs accountable institutions to maintain Financial Intelligence Centre Act compliance during the pandemic by leveraging digital onboarding and technology for customer due diligence. The authorities clarify that existing clients will not face account freezes or closures solely due to lockdown-related identification delays, provided institutions submit structured post-lockdown compliance plans by 15 May 2020 with completion dates extending no further than 4 December 2020. While encouraging operational flexibility and risk-based approaches, the guidance confirms that existing supervisory and enforcement powers remain fully intact to counter emerging money laundering and terrorist financing risks.