Public Compliance Communications 43

PCC 23A - Interpretation of the scope of credit providers

currentaccepted1 March 2026Used in current RMCP catalogue

Guidance provided by the Centre is the only form of guidance formally recognised in terms of the FIC Act and the Regulations issued in terms of the FIC Act. (page 2)

This public compliance communication cross-references 3 linked laws.

Open PDF Open on FIC website

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Cross-references
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PCC 23A - Interpretation of the scope of credit providers
"² Refer to the NCA for the definition of juristic person"
PCC 23A - Interpretation of the scope of credit providerspage 11recorded 10 August 2026

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Cross-references
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PCC 12A - Guidance on outsourcing to third parties
"Refer to PCC 12A, which sets out guidance on third-party service providers."
PCC 12A - Guidance on outsourcing to third partiespage 8recorded 10 August 2026
Cross-references
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Used in the current RMCP catalogue

This publication is referenced by the current RMCP citation catalogue. The catalogue records the source URL, corpus SHA-256, publication status, and corpus sync timestamp used when RMCP starter documents are assembled.

PCC 23A

Document

Page 1

FIC

Financial Intelligence Centre

PUBLIC COMPLIANCE COMMUNICATION

PUBLIC COMPLIANCE COMMUNICATION 23A

GUIDANCE ON THE INTERPRETATION OF THE SCOPE OF CREDIT PROVIDERS AS DESIGNATED UNDER ITEM 11 OF SCHEDULE 1 TO THE FINANCIAL INTELLIGENCE CENTRE ACT, 2001 (ACT 38 OF 2001) AND POTENTIAL RISK INDICATORS

30 March 2026

Page 2

Public Compliance Communication 23A Guidance on the Interpretation of the Scope of Credit Providers as Designated Under Item 11 Of Schedule 1 to The Financial Intelligence Centre Act, 2001 (Act 38 of 2001) and Potential Risk Indicators

Page 2 of 17

PCC SUMMARY

A "credit provider" is designated in item 11 of Schedule 1 to the Financial Intelligence Centre Act, 2001 (Act 38 of 2001) (FIC Act) as follows:

Second category of credit provider considerations – under Item 11(b) of Schedule 1

2.18. The second category of credit providers that are included under item 11(b) of Schedule 1 to the FIC Act, are all persons who carry on the business of providing credit in terms of any credit agreement that is **excluded** from the application of the NCA, by virtue of section 4(1)(a) or (b) of the NCA. Entities that have only entered into incidental credit agreements are not considered to be carrying on the business of a credit provider for purposes of the second category as well, item 11(b), for purposes of the second category as well. The facts in each case will determine whether the credit provider is carrying on the business of providing credit.

2.19. The second category of credit providers is wide. All credit agreements where the consumer is a juristic person with means and who do not require the protection of the NCA (see criteria in S4(1)(a)) falls within the ambit of item 11(b) of Schedule 1, which are excluded from the NCA. The entity should still be carrying on the business of providing credit, regardless of whether the credit agreement is not specifically excluded from the application of the NCA. The onus is on the entity to evidence that they do not fall within this category, where such assertions are made. The NCA does not apply to item 11(b) credit providers and therefore the sections pertaining to interest and costs are equally not applicable. Any credit provided where a loan amount is deferred and paid overtime, even without any interest, fees or costs are deemed to be credit. The specific terminology used in the second category of credit providers is discussed below.

2.20. “Credit agreement” includes, *inter alia*, a credit facility, credit transaction, credit guarantee, any combination of a credit facility, credit transaction, and credit guarantee.

2.21. Read in alignment with section 4(1)(a) and (b), as well as section 9(4) of the NCA, the definition of credit agreement for purposes of the application of the second category includes instances where:

Single transaction or business relationship

2.26. A business relationship is an arrangement between a client and an accountable institution for the purpose of concluding transactions on a regular basis. A single transaction is either (a) a transaction other than a transaction concluded in the course of a business relationship and (b) where the value of the transaction is not less than the amount of R5 000.

2.27. From the definition of a single transaction the emphasis is placed on one transaction. The Centre considers the payout of a loan and the repayment of the loan as multiple transactions. Given that there is an element of time duration to this engagement, there is an expectation on the part of accountable institutions that the engagement with the client would recur over a period of time.

2.28. Considering the above, it is the Centre's interpretation that credit agreements are considered to be business relationships. As such, the customer due diligence and targeted financial sanctions obligations set in sections 21F, 21G, 21H, and 28A of the FIC Act and other relevant sections must be applied.

2.29. Accordingly, credit providers designated under item 11 are required to develop, implement and maintain a Risk Management and Compliance Programme in accordance with section 42 of the FIC Act, proportionate to the nature, size and complexity of their business and tailored to the specific ML, TF and PF risks inherent in the provision of credit.

3. POTENTIAL ANTI-MONEY LAUNDERING, COUNTER TERRORIST FINANCING AND COUNTER PROLIFERATION FINANCING RISK INDICATORS

3.1. Credit providers must conduct money laundering, terrorist financing, and proliferation financing (ML, TF, and PF) risk assessments on a business and at a client level. Due to operating in the industry, credit providers would be best placed to determine where the potential ML, TF and PF vulnerabilities are.

PCC 23A - Interpretation of the scope of credit providers

Relationships in

Relationships out

Used in the current RMCP catalogue

Document

PUBLIC COMPLIANCE COMMUNICATION

PCC SUMMARY

Linked legislation

THE AUTHORITATIVE NATURE OF GUIDANCE

DISCLAIMER

COPYRIGHT NOTICE

OBJECTIVE

1. INTRODUCTION

2. INTERPRETATION OF A CREDIT PROVIDER

Financial Action Task Force definition of lending providers

General definition considerations of Schedule 11 to the FIC Act

First category of credit provider considerations – Item 11(a) of Schedule 1

Second category of credit provider considerations – under Item 11(b) of Schedule 1

Single transaction or business relationship

4. COMMUNICATION WITH THE CENTRE