FIC South Africa Updates TFS List Screening Obligations

• The FIC hosts an updated replica of the UNSC's consolidated list of targeted financial sanctions.
• Accountable institutions must screen clients against the TFS list within 24 hours of changes made by the UNSC.
• Frozen assets can be applied for using the Permitted Financial Services and Dealing with Property Application Form.

The FIC Act mandates that accountable institutions in South Africa must screen their clients against the TFS list and freeze assets if a match is found.

The Financial Intelligence Centre (FIC) has implemented a Targeted Financial Sanctions (TFS) list, which is an updated replica of the United Nations Security Council's (UNSC) consolidated list of targeted financial sanctions. The TFS list includes all persons and entities applicable to sections 26A, 26B, and 26C of the FIC Act, requiring accountable institutions to scrutinize their clients against the list within 24 hours of changes made by the UNSC. This means that any changes to the UNSC's sanctions list will be reflected on the FIC's TFS list within a day, necessitating swift action from accountable institutions.

The FIC Act mandates that accountable institutions in South Africa must screen their clients against the TFS list and freeze assets if a match is found. This obligation is not only a requirement but also a critical measure to prevent illicit financial activities and comply with international sanctions. The FIC's online search tool facilitates this process, allowing institutions to identify possible matches between their clients' names and/or entities on the TFS list. Furthermore, the FIC Act allows for permitted financial services or dealing with property affected by a sanction under certain circumstances, which can be applied for using the Permitted Financial Services and Dealing with Property Application Form.

The implementation of the TFS list is crucial in maintaining South Africa's commitment to international cooperation on sanctions. By screening clients against this list, accountable institutions can prevent illicit financial activities and ensure compliance with regulations. Moreover, the FIC's efforts to maintain an updated replica of the UNSC's consolidated list demonstrate its dedication to staying abreast of global developments and adapting to changing circumstances. As such, the TFS list serves as a vital tool in preventing and combating money laundering, terrorist financing, and other illicit activities.

Accountable institutions in South Africa must screen their clients against the FIC's Targeted Financial Sanctions (TFS) list within 24 hours of changes made by the UNSC, and freeze assets if a match is found.

Source: Original reporting via Briefly