SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain the Finance Intelligence Centre Act, Act 38 of 2001 and its implications for client relations 
SAQA US ID UNIT STANDARD TITLE
14506  Explain the Finance Intelligence Centre Act, Act 38 of 2001 and its implications for client relations 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2003-08-13  2006-08-13  SAQA 0249/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-08-13   2010-08-13  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
242593  Explain South African money laundering legislation and the implications for accountable institutions in transacting with clients  Level 4  NQF Level 04  3   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in any industry where there is a responsibility to verify the source of funds under the Act.

The qualifying learner is capable of:
  • Explaining the purpose of the Act.
  • Explaining the requirements of the Act in terms of knowing the client.
  • Explaining the record keeping function prescribed in the Act.
  • Explaining how to report suspicious transactions.
  • Understanding the consequences of non-compliance. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication and Mathematical and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Verification of a South African Legal Entity includes Companies, Closed Corporations,
    and their Directors.
  • Persons authorised to act on behalf of a Trust include Trustees, beneficiaries, settlers and any other parties authorised to act on behalf of the Trust.
  • Cash transactions include coins, paper money, and traveller`s cheques. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the purpose of the Finance Intelligence Centre Act, Act 38 of 2001 (FICA). 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The purpose of the Act is explained and an indication is given as to why the Act is necessary. 

    ASSESSMENT CRITERION 2 
    2. The relationship of the Financial Intelligence Centre Act, Act 38 of 2001 (FICA) to the Prevention of Organised Crime Act, 121 of 1998 (POCA) is explained with examples of which Act takes precedence in two different situations. 

    ASSESSMENT CRITERION 3 
    3. The concept of money laundering is explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The purpose of the Financial Intelligence Centre is explained with reference to its anti money laundering function. 

    ASSESSMENT CRITERION 5 
    5. The concept of an accountable institution is explained with examples relevant to a specific organisation. 

    ASSESSMENT CRITERION 6 
    6. The concept of unlawful activities is explained with examples. 

    ASSESSMENT CRITERION 7 
    7. The purpose of the Money Laundering Advisory Council is explained with reference to its anti money laundering functions. 

    ASSESSMENT CRITERION 8 
    8. The role of the Money Laundering Reporting Officer is explained with reference to his/her anti money laundering functions. 

    SPECIFIC OUTCOME 2 
    Explain the requirements of the Act in terms of knowing the client. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The categories of client indicated in the Act are identified with examples. 

    ASSESSMENT CRITERION 2 
    2. Documents required to identify and verify a natural person are named with reference to South African citizens and foreign nationals. 

    ASSESSMENT CRITERION 3 
    3. Documents required to identify and verify a legal person are named with reference to South African legal entities and foreign companies. 

    ASSESSMENT CRITERION 4 
    4. Documents required to identify and verify a natural person are named with reference to South African companies and closed corporations and foreign companies. 

    ASSESSMENT CRITERION 5 
    5. Documents required to identify and verify a Trust are named with reference to persons authorised to act on behalf of a Trust. 

    ASSESSMENT CRITERION 6 
    6. Documents required to identify and verify unincorporated entities are named with reference to letters of authorisation and constitutions. 

    ASSESSMENT CRITERION 7 
    7. The process to be followed if the client is not present in person is explained with examples. 

    ASSESSMENT CRITERION 8 
    8. The importance of verifying the client in terms of the type of business relationship with the accountable institution is explained and an indication is given of how this differs in the case of a single transaction. 

    ASSESSMENT CRITERION 9 
    9. A client profile is developed to identify the proceeds of unlawful activities or money laundering activities. 

    SPECIFIC OUTCOME 3 
    Explain the recording function prescribed by the Act. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Records required by the Act are listed and an indication is given of timeframes required for storing single transactions and business relationships. 

    ASSESSMENT CRITERION 2 
    2. Requirements relating to accessibility of information are explained with examples. 

    ASSESSMENT CRITERION 3 
    3. The requirement for access to records by the Finance Intelligence Centre is explained and an indication is given of the consequences of non-compliance. 

    SPECIFIC OUTCOME 4 
    Explain how to report suspicious transactions. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The process to be followed in reporting cash transactions is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The process to be followed in the case of suspicious and/or unusual transactions is explained with reference to identification and reporting. 

    ASSESSMENT CRITERION 3 
    3. Possible indicators that could infer that a transaction is suspicious are discussed using case studies and an indication is given of who is responsible for reporting the suspicious transaction. 

    SPECIFIC OUTCOME 5 
    Demonstrate knowledge and understanding of the consequences of non-compliance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Penalties for non-compliance are explained with reference to personal liability and the liability of the organisation. 

    ASSESSMENT CRITERION 2 
    2. Circumstances or products that are exempt from the, "know your client" requirements are identified with examples. 

    ASSESSMENT CRITERION 3 
    3. The internal rules of an organisation relating to FICA are analysed for compliance. 

    ASSESSMENT CRITERION 4 
    4. Defenses against personal liability for not reporting suspicious transactions available to employees, directors, trustees and partners of accountable institutions in the event of prosecution are discussed for three different scenarios. 

    ASSESSMENT CRITERION 5 
    5. The impact of non-compliance on the economy of South Africa is explained with reference to attracting foreign investment. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA (INSQA framework for assessment and moderation). 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information relating to the Financial Intelligence Centre Act (FICA). 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the various sections of the legislation. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to see the world as a set of related systems by explaining the impact of non-compliance on the economy of South Africa. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner is able to participate as a responsible citizen in the life of local, national and global communities by knowing his/her responsibility in reposting suspicious transactions. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242593, which is "Explain South African money laundering legislation and the implications for accountable institutions in transacting with clients", Level 4, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 
    Core  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2007-02-11  Was INSETA until Last Date for Achievement 
    Core  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered"     		 2006-08-13  Was INSETA until Last Date for Achievement 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  48640   National Certificate: Financial Services Management  Level 4  Level TBA: Pre-2009 was L4  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2006-10-08  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.