High-Value Goods Dealers (HVGDs) in South Africa are increasingly vulnerable to money laundering, with the Financial Intelligence Centre (FIC) identifying them as a key area for concern.
If you sell high-value goods, such as machinery, vehicles, heavy equipment, or medical devices, FICA compliance is not optional. It is a legal requirement that protects your business from criminal exploitation.
The Greylist Delisting: A Beginning, Not an Ending
South Africa’s removal from the FATF greylist is a milestone, but it is only the beginning. The real risk over the next 12 months is compliance fatigue.
It is tempting to think, “Mission accomplished.” That would be a critical mistake. Financial crime is a perpetual game of cat and mouse. As criminals grow more sophisticated, FATF standards will continue to evolve. Compliance is not a project with an end date; it is the new normal.
Why High-Value Goods Dealers Are Prime Targets
High-value goods are prime targets because they can be easily converted into cash and used to move value anonymously. Without robust compliance processes, your business could inadvertently facilitate money laundering or terrorist financing, risking severe penalties and reputational damage.
Many businesses assume existing processes are enough, or that banks’ that conduct FICA checks could cover them. This would be a costly misconception.
As a HVGD, you are legally required to perform full Customer Due Diligence (CDD) for every qualifying transaction, whether they are an individual, a foreign national, or a juristic entity.
To name a few, the list of obligations include:
- Registering with the FIC (consider a dual registration if you are a Credit Provider also)
- Verifying the identity of individuals or legal entities, including addresses or locations
- Reporting any suspicious activity or transactions to the FIC
A full list of FICA obligations can be found here.
How do You Protect Your Business?
Collecting comprehensive customer information at onboarding is essential, but the bigger risk is failing to reassess clients over time. Risk is not static.
A client who was low-risk at onboarding might become high-risk after a change in ownership, adverse media exposure, sanctions hits, political exposure or relocation to a high-risk jurisdiction. As criminals adopt more sophisticated methods, your business must employ equally advanced technologies to detect and prevent illicit activities.
FICA Compliance Doesn't Have to Be Complicated
What if FICA compliance didn't have to consume hours of your team's time or drain your resources?
nCino KYC removes the complexity, equipping your team to work faster, smarter, and with complete confidence.
Our solution does the heavy lifting:
- Streamlined, secure client onboarding
- Access to South Africa’s most comprehensive DPEP and PIP database, with continuously screening to flag emerging risks
- Automated risk ratings tailored to your business, accelerating assessments without compromising accuracy
Don't let FICA compliance slow your business down or expose you to regulatory penalties. nCino KYC can help you FICA at the speed of your business. Partner with us to streamline your compliance processes while maintaining the highest standards of due diligence.
Ready to see how we can transform your FICA compliance? Reach out today to schedule a consultation with our team.
About nCino KYC:
nCino KYC is powering a new era in FICA. We take the hours and complexity out of FICA compliance by giving your team the software and services to work faster, smarter, and with complete confidence.
