FICA

FICA

  1. We wish to advise that during 2002, the new Financial Intelligence Centre Act 38 of 2001 (“FICA”) was passed, certain provisions of which were introduced with effect from 3 February 2003. The primary intention behind the promulgation of the FICA is to combat money laundering and crimes associated therewith.
  2. The FICA places certain obligations on “accountable institutions” which category includes inter alia, law firms.
  3. Accordingly, Christodoulou & Mavrikis Inc. (as do all law firms) is obliged to comply with the FICA, which obligations include inter alia:
    • keeping records of all dealings with clients;
    • before rendering legal services to clients, taking appropriate steps to establish and verify the identity of such clients;
    • reporting “unlawful activities” as defined by the FICA, including reporting “suspicious and unusual transactions” to the Financial Intelligence Centre (“FIC”). This may require us to report certain prescribed information that Christodoulou & Mavrikis Inc. and or any employee of Christodoulou & Mavrikis Inc. knows, or as a professional, ought reasonably to know or to regard as a “suspicious or unlawful activity or transaction” as defined in the FICA.
  4. The FIC will not itself investigate any criminal activity, but will furnish certain information, as reported to the FIC, to the relevant investigating authorities, intelligence services and South African Revenue Services.
  5. Notwithstanding our reporting obligations in terms of the FICA, the common law right of legal privilege that is upheld in South African law is recognised by the FICA.
  6. In terms of the FICA, we are now obliged to request more information from our clients than was necessary in the past and if necessary report such information to the FIC.
  7. As an established and reputable firm in South Africa and in light of both the interests of our clients and our desire to assist with combating of money laundering activities in South Africa, we are and will continue to implement the FICA and carry out our obligations under the FICA.
  8. We will be keeping you fully apprised of all further developments concerning the application of the FICA. Should you have any queries or should you require any professional advice on this issue, please contact our Compliance Officer Mr L d’Onofrio on +27 (011) 325 4201.
  9. Note also that all cash payments to our firm in excess of R 25000.00 must be reported to the authorities.