Exchange Control Circular No. 18/2022
Circular Reference: Exchange Control Circular No. 18/2022
Circular Date: 20 September 2022
Circular Status: Pending
Beneficial ownership
Financial Action Task Force (FATF) Recommendation 26, inter alia, states that countries should ensure that financial institutions are subject to adequate regulation and supervision and are effectively implementing the FATF Recommendations. Competent authorities or financial supervisors should take the necessary legal or regulatory measures to prevent criminals or their associates from holding, or being the beneficial owner of, a significant or controlling interest, or holding a management function in, a financial institution.
The South African Reserve Bank is listed as a supervisory body under Schedule 2 of the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001), as amended (FIC Act). Additionally, section 45(1) of the FIC Act provides that every supervisory body is responsible for enforcement of, and compliance with, the FIC Act or any order, determination or directive made in terms of the FIC Act by all accountable institutions (AIs), as listed in Schedule 1 of the FIC Act, regulated or supervised by it.
The Financial Surveillance Department (FinSurv) is committed towards implementing the FATF Recommendations on anti-money laundering and countering the financing of terrorism.
In view of the findings identified during the recent FATF Mutual Evaluation of South Africa and the subsequent work conducted by FinSurv in this regard, it has become necessary to institute amendments to the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority (ADLA Manual) with a view to strengthen the regulation and supervision of the Authorised Dealer in foreign exchange with limited authority industry.
For ease of reference, attached is a schedule highlighting the amendments made to the ADLA Manual.
The amended ADLA Manual may be accessed on the South African Reserve Bank’s website, www.resbank.co.za by following the links: Home > What we do > Financial Surveillance > Financial Surveillance documents.
Head of Department: Financial Surveillance