2. Source: Section 2 General Code of Conduct A n t i m o n e y l a u n d e r i n g ( A M L ) i s a t e r m m a i n l y u s e d i n t h e f i n a n c i a l a n d l e g a l i n d u s t r i e s t o d e s c r i b e t h e l e g a l c o n t r o l s t h a t r e q u i r e f i n a n c i a l i n s t i t u t i o n s a n d o t h e r r e g u l a t e d e n t i t i e s t o p r e v e n t o r r e p o r t m o n e y l a u n d e r i n g a c t i v i t i e s. A n t i - m o n e y l a u n d e r i n g g u i d e l i n e s c a m e i n t o p r o m i n e n c e g l o b a l l y a f t e r t h e S e p t e m b e r 1 1, 2 0 0 1 a t t a c k s a n d t h e s u b s e q u e n t e n a c t m e n t o f t h e U S A P A T R I O T A c t AML does not deal with the crime itself but the illegal proceeds of the crime

3. Protection of Constitutional Democracy against Terrorist and Related Activities Prevention of Organized Crime Act Financial Intelligence Centre Act Deals with organised crime, money laundering and criminal gang activities Introduces obligation to report terrorist related activities Introduces control measures to assist in detection and investigation of money laundering activities

4. Identification of the proceeds of unlawful activities and the combating of money-laundering activities Make information collected by FIC available to Investigating authorities To exchange information with similar bodies in other countries

5. Bank Insurance Casino Accountable Institutions Trusts NDPP SARS Investigative Authorities e.g.. SAPS ML Advisory Council Reports Investigations Awareness & training International Links Coordination Sharing Supervisory Bodies (FSB) Compliance Data storage Analysis Reports FIC FIC Overall Architecture

6. FSP Natural Person Company Partnerships Trusts & Foreign entities Stokvels Minors Acting on another’s authority Close Corporation

7. Keep 5 years after last TX Update within 3 days of change notice All changes must have proof Confirm in writing every 2 years Copies of all transactions

8. Suspicious or unusual transaction Reported by internet or method developed by FIC STR’s (suspicious transaction report) are guaranteed protection against prosecution Reported within 5 days of detection Source: Sections 22,23,24,38 of FICA

9. Source: FICA  An attorney A board of executors or a trust company …  An estate agent  A financial instrument trader…  A management company registered in terms of the Unit Trusts Control Act…  A person who carries on the "business of a bank”…  A mutual bank  A person who carries on a "long-term insurance business" …  A gambling business (license)…  A person … business of dealing in foreign exchange…  A person who carries on the business of lending money against the security of securities.

10. Source: FICA  A person who carries on the business of rendering investment advice or investment broking services …  A public accountant …  A person who issues, sells or redeems travelers' cheques, money  The Postbank…  A member of a stock exchange…  The Ithala Development Finance Corporation …  A person who has been approved … by the Registrar of Stock Exchanges  A person who has been approved … by the Registrar of Financial Markets  A person who carries on the business of a money remitter.

11. Identify and verify clients Steps taken to safeguard funds and that funds dealt with ito mandate Distinguished from FSP funds Adequate staff training Outsource record keeping to 3rd parties Electronic copies Systems and procedures for FAIS/FICA compliance Client identification ID and report suspicious transaction Risk rating of client Keep records of business relationships and transactions Adopt measures designed to promote compliance by accountable institution Reporting duties and obligations to give and allow access to information

12. Source: Section 42 of FICA The purpose of internal rules is to regulate compliance with money- laundering legislation by the FSP, Representatives, Agents, Staff and Key Individuals To arrange responsibilities of each person in business and put in place systems and procedures Rules must be formulated for: Identification and verification of clients Identifying and reporting suspicious transactions Keeping records