Public Compliance Communications 15

PCC 41 - Guidance for NPOs on AML/CFT

currentaccepted1 September 2023

This PCC applies to all types of NPOs in South Africa, the relevant NPO Regulators as set out in paragraph 4 below and third parties that deal with NPOs. (page 5)

This public compliance communication cross-references 6 linked laws.

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Cross-references
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Guidance Note 7
"The below factors may be considered: (In addition accountable institutions must refer to Guidance Note 7 which discusses how risk determination can be done."
Guidance Note 7page 24recorded 28 September 2026
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Guidance Note 6A - Terrorist property report obligations
"Accountable institutions must refer to Guidance Note 6A for further guidance in this regard."
Guidance Note 6A - Terrorist property report obligationspage 22recorded 28 September 2026
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Document

Page 1

FIC

Financial Intelligence Centre

PUBLIC COMPLIANCE COMMUNICATION

No 41 (PCC 41)

GUIDANCE ON COMBATING THE

FINANCING OF TERRORISM AND ANTI-

MONEY LAUNDERING MEASURES

RELATING TO NON-PROFIT

ORGANISATIONS

Page 2

Public Compliance Communication Number 41

Page 2 of 28

Linked legislation

Cross-references

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Financial Intelligence Centre Act 38 of 2001 2

""The Centre" means the Financial Intelligence Centre established in terms of section 2 of the FIC Act."
Financial Intelligence Centre Act 38 of 2001page 3recorded 28 September 2026

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Financial Intelligence Centre Act 38 of 2001 49A

"Where any person (including a NPO founder, member, employees, trustee or authorised representative) receives or provides benefits (including finances, economic benefit or use of property) to any person or entity listed on the TFS list, and/or the list in terms of section 25 of POCDATARA, that person will be liable to prosecution in terms of section 49A of the FIC Act and/or section 4 of POCDATARA."
Financial Intelligence Centre Act 38 of 2001page 11recorded 28 September 2026

Cross-references

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Financial Intelligence Centre Act 38 of 2001

"Where a third party is an accountable institution in terms of schedule 1 of the FIC Act, that accountable institution would have to comply with all the requirements as set out in the FIC Act, and the accountable institutions Risk Management and Compliance Programme (RMCP)."
Financial Intelligence Centre Act 38 of 2001page 19recorded 28 September 2026

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Financial Intelligence Centre Act 38 of 2001 26B

"e) relates to the contravention of a prohibition under section 26B of the FIC Act."
Financial Intelligence Centre Act 38 of 2001page 20recorded 28 September 2026

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Financial Intelligence Centre Act 38 of 2001 28A

"Further to paragraph 8.8 above all accountable institutions are required to comply with the reporting requirements as per section 28A of the FIC Act."
Financial Intelligence Centre Act 38 of 2001page 22recorded 28 September 2026

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Financial Intelligence Centre Act 38 of 2001 29

"All businesses, including accountable and reporting institutions must not file VDRs in any instances, and are required to comply with the reporting requirements as per section 29 of the FIC Act."
Financial Intelligence Centre Act 38 of 2001page 22recorded 28 September 2026

VDR reporting by NPO's, NPO Regulators and third parties

8.1. NPO's founder, trustees, members, employees and authorised representatives who suspect or know that an NPO has or is being misused for terrorist financing and money laundering purposes, should report such facts to the Centre within a reasonable period. When reporting the NPO is to state all the facts upon which his/ her suspicion and or knowledge is based, this report is referred to as a VDR.

8.1.1. Terrorist financing and money laundering purposes may include but is not limited to instances where the NPO has received or is about to receive the proceeds of unlawful activities or property which is connected to an offence relating to the financing of terrorist and related activities, and/or;

8.1.2. Where the NPO has been used or is about to be used in any way for money laundering purposes or to facilitate the commission of an offence relating to the financing of terrorist and related activities, and/or;

8.1.3. Where the NPO knows or suspects that that the NPO has received or is about to receive the proceeds of unlawful activities (i.e. relating to terrorist financing), and/or the NPO is about to be used to facilitate terrorist financing (and or any other offence) and/or is party to a transaction or series of transactions which:

a) facilitated or is likely to facilitate the transfer of the proceeds of unlawful activities or property, which is connected to an offence relating to the financing of terrorist and related activities;

b) has no apparent business or lawful purpose;

c) may be relevant to the investigation of an evasion or attempted evasion of a duty to pay any tax, duty or levy imposed by legislation administered by the Commissioner for the SARS;

d) relates to an offence relating to the financing of terrorist and related activities; or

e) relates to the contravention of a prohibition under section 26B of the FIC Act. The NPO is advised to file a VDR.

Public Compliance Communication Number 41

Page 20 of 28

PCC 41 - Guidance for NPOs on AML/CFT

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Document

PUBLIC COMPLIANCE COMMUNICATION

Linked legislation

PCC SUMMARY

DISCLAIMER

COPYRIGHT NOTICE

OBJECTIVE

GLOSSARY

1. INTRODUCTION

2. APPLICATION OF THIS PUBLIC COMPLIANCE COMMUNICATION

3. INTERNATIONAL STANDARDS

4. FRAMEWORK WITHIN WHICH NPOs FUNCTION IN SOUTH AFRICA

Registration models in South Africa

Interpretation of the Centre

5. COMBATING THE FINANCING OF TERRORISM AND ANTI-MONEY LAUNDERING LEGISLATION APPLICABLE TO NPOs

Financial Sanctions

Money laundering offences in terms of POCA

Targeted Financial Sanctions and Terrorist Financing Offences

6. COMBATING TERRORIST FINANCING/ ANTI-MONEY LAUNDERING RISKS AND VULNERABILITIES

Issues relating to funding

Improper registration of NPOs

Irregularities in the beneficiary pay-outs by the NPO

7. RECOMMENDED MEASURES TO MITIGATE TERRORIST FINANCING AND MONEY LAUNDERING RISKS

Recommendations specifically aimed at NPOs

Recommendations specifically aimed at third parties dealing with NPOs

8. REPORTING

VDR reporting by NPO's, NPO Regulators and third parties

Legal consequences of submitting a VDR to the Centre

Example 3

Location

Goods and services provided

NPO beneficiary

Transactions

Example 4 Misrepresentation of a non-profit organisation

Example 5 Creation of an NPO for illicit activity

Example 6 NPO member criminal records

Example 7 Transaction

10. CONCLUSION