Published: 2010/12/02 07:13:37 AM 

http://www.businessday.co.za/articles/Content.aspx?id=128382

THE Financial Intelligence Centre (FIC) yesterday said amendments to legislation governing its functions meant it had gained more power to combat money laundering.

The Financial Intelligence Centre Amendment Act of 2008 came into effect yesterday. The FIC was formed to receive reports pointing to financial crime from businesses and financial institutions. It in turn refers these to the prosecuting bodies.

FIC director Murray Michell said the amendments brought clarity to the legal framework of the body and broadened the functions of supervisory bodies defined by the act.

The roles of organisations such as the JSE and the Companies and Intellectual Property Registration Office were redefined by the amendments. They used to be supervisors but were now regulating bodies.

"The act clarifies the roles of financial institutions in SA," Mr Michell said. "The supervisory bodies have been granted greater ability to inspect parties for noncompliance with the act."

He said they could now discover whether companies were keeping records of administrative processes and report suspicious activities to the FIC.

"More importantly, penalties, which can be relatively onerous, can be imposed on what were criminal transgressions. Also, the act allows the FIC and other supervisors to do this via their own administrative processes," Mr Michell said.

He said the amended act strengthened the FIC’s ability to detect and prevent illicit monies being laundered through SA’s financial system.

All businesses defined by the amendment act will have to register with the FIC by March 1.