Directive 8 of 2023 – Screening of employees

FIC

Financial Intelligence Centre

DIRECTIVE 8 of 2023

SCREENING OF EMPLOYEES FOR COMPETENCE AND INTEGRITY AND SCRUTINISING OF EMPLOYEE INFORMATION AGAINST APPLICABLE TARGETED FINANCIAL SANCTIONS LISTS AS A MONEY LAUNDERING, TERRORIST FINANCING AND PROLIFERATION FINANCING CONTROL MEASURE

March 2023

This Directive consists of four parts:

1. Purpose of the Directive

2. Directive

3. Effective date and non-compliance

Directive 8 on screening of employees for competence and integrity and scrutinising of employees against applicable sanctions lists as a money laundering, terrorist financing and proliferation financing control measure.

Page 1 of 3

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1. Purpose of the Directive

1.1 The purpose of this Directive is to require accountable institutions to screen prospective employees and current employees for competence and integrity, as well as to scrutinise employee information against the targeted financial sanctions lists, in order to identify, assess, monitor, mitigate and manage the risk of money laundering, terrorist financing and proliferation financing.

2 Directive

2.1 This Directive is issued by the Financial Intelligence Centre (FIC) in terms of section 43A(1) of the Financial Intelligence Centre Act, 2001 (Act 38 of 2001) (the FIC Act.)

2.2 This Directive applies to all accountable institutions.

2.3 Accountable institutions must screen prospective employees and current employees for competence and integrity periodically, in a risk-based manner.

2.4 An accountable institution must scrutinise information concerning its prospective employees and current employees upon notice being given by the Director under section 26A(3) of the FIC Act, to determine whether any such prospective employee or current employee, is a person mentioned in the notice by the Director.

2.5 The accountable institution must provide for, and record, the manner in which screening for competence and integrity, as well as the manner in which scrutinising of employee information against targeted financial sanctions lists in terms of paragraph 2.3 and 2.4, will be conducted.

2.6 An accountable institution must keep a record of the outcome of the screening for competence and integrity as well as the scrutinising of employee information against targeted financial sanctions lists as required in terms of paragraph 2.3. and 2.4.

2.7 The records relating to both the manner and outcomes of the screening and scrutinising of employee information as required in terms of paragraph 2.5 and 2.6 must, on request, be made available to the FIC or a supervisory body which performs regulatory or supervisory functions in respect of that accountable institution.

Directive 8 on screening of employees for competence and integrity and scrutinising of employees against applicable sanctions lists as a money laundering, terrorist financing and proliferation financing control measure.

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3 Effective date and non-compliance

3.1 This Directive becomes effective on date of publication in the Government Gazette.

3.2 Failure to comply with this Directive may result in the imposition of an administrative sanction, in accordance with section 45C of the FIC Act.

Issued by:

The Financial Intelligence Centre

31 March 2023

Government Gazette 48357, number 3257

Government Printing Works - 48357_31-3_FinanceSeparate.pdf - All Documents

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Directive 8 on screening of employees for competence and integrity and scrutinising of employees against applicable sanctions lists as a money laundering, terrorist financing and proliferation financing control measure.