High-value transactions attract more than legitimate buyers; they're increasingly used as cover to launder illicit funds. If your business sells equipment, machinery, vehicles, or any physical goods valued at R100 000 or more, you're operating in a sector criminals are actively targeting.
The numbers are staggering: South African businesses are estimated to launder between R16-billion and R64-billion annually, and High-Value Goods Dealers (HVGDs) have become prime targets.
The cost of missing red flags
When it comes to financial crime, warning signs are almost always there—but rarely spotted in time. In South Africa's tightened regulatory environment, missing red flags early can expose your business to reputational damage, operational disruption, and legal consequences that far exceed the cost of prevention.
Since December 2022, selling a single physical item for R100 000 or more classifies your business as an Accountable Institution under the Financial Intelligence Centre (FIC) Act. But compliance isn’t just about ticking boxes -it’s about protecting your business from becoming an unwitting accomplice to financial crime.
Common red flags you need to recognise
Understanding how criminals exploit businesses and knowing how to spot red flags and conduct effective client screening is critical to protecting your business.
The FIC has issued extensive guidance around certain behavioural and transactional warning signs, including:
- Structured cash deposits just under the R49 999,99 FIC Act (FICA) reporting threshold
- Cash refund requests after a high-value purchase
- Clients unwilling to provide standard identification documentation
- Payments from or to high-risk jurisdictions known for weak anti-money laundering (AML) and counter financing of terrorism (CFT) controls
- Unusual transactions that make no commercial or economic sense
- Goods purchased far from a client’s residential or business address
- Clients transacting in sectors unrelated to their known activity, with no history or stated rationale
These indicators rarely appear in isolation. A client might insist on cash-only payments, refuse to explain the source of funds, and make high-value purchases in a different province. On their own, each behaviour might appear innocuous, but together, they signal risk. Knowing your client and asking the right questions can make all the difference.
FICA Masterclass Webinar: Spot red flags and prevent money laundering in your business
Join nCino KYC’s compliance experts for a masterclass where you'll discover how criminals are exploiting high-value goods dealers and what you can do to stop them. You'll leave this session with real-world money laundering scheme examples, clear identification of transaction red flags, and practical compliance strategies that protect your business.
- Date: Wednesday, 25 February 2026
- Time: 10:00 – 11:00 SAST
- Duration: 60 minutes + Q&A
Register Now - Limited Spaces Available
With the FIC aggressively targeting non-financial businesses with heavy fines for non-compliance, this is your opportunity to get your questions answered and ensure you're compliant.
nCino KYC takes the hours and complexity out of FICA compliance by giving your team the software and services to work faster, smarter, and with complete confidence!
