Regulatory Alerts2022-03-09
FSCA Exchanges Immediate Outcome 4 and Sector Risk Assessment Communication
The Financial Sector Conduct Authority (FSCA) issued this communication to address South Africa’s “moderate” rating for Immediate Outcome 4 following the Financial Action Task Force (FATF) mutual evaluation, requiring non-bank financial institutions to transition from compliance-driven to risk-based preventive measures by October 2022. The FSCA identifies critical deficiencies—including limited risk understanding, inadequate beneficial ownership tracking, and delayed suspicious transaction reporting—and mandates immediate remediation to avoid grey-listing. To support compliance, the Authority has updated its sector risk assessment, published targeted webinars and guidance, and reinforced supervisory engagement while reserving administrative sanctions for persistent non-compliance with the Financial Intelligence Centre Act.