CAPITAL EQUIPMENT
Financial Intelligence Centre Act (FICA) significantly altered the compliance landscape. Previously, many vehicle dealers fell into the category of reporting institutions with limited obligations. The amendments introduced a dedicated “high-value goods” schedule. Under the revised framework, any business that sells any single physical good valued at R100 000 or more - including vehicles, machinery, artwork or electronics - qualifies as a High-Value Goods Dealer (HVGD) and is subject to full FICA obligations. That means verifying customer identities, understanding the source of funds, screening for politically exposed persons (PEPs) and sanctions, maintaining detailed records, and reporting suspicious transactions. “It was a game changer,” McEwan says. “And with the level of fines now in place, compliance is not optional.” Common compliance mistakes The biggest mistake, he argues, is inaction. Some HVGDs still do not realise the law applies to them. Others treat compliance as a tick-box exercise. FICA compliance is layered and detailed, supported by extensive guidance notes
In more elaborate scenarios, criminals may equip a factory floor with machinery bought using illicit funds, then sell the entire “ready-to-operate” business. The proceeds of the property sale effectively legitimise the original dirty cash. “The creativity is remarkable,” McEwan notes. “And often, innocent companies are being abused without realising it.” Red flags dealers should not ignore Cash payments remain an obvious warning sign, particularly where large sums are involved. But McEwan cautions that the danger is not always blatant. Dealers should be wary of customers who are vague about their business activities or unable to clearly explain why
they need specific equipment. A buyer who appears indifferent to price, specifications or warranties should also raise concern. “Legitimate buyers tend to care about the detail,” he says. Other red flags include newly formed companies making substantial purchases without apparent funding constraints, multiple high-value transactions in a short period, and third-party payments - especially where funds originate from unrelated individuals or foreign entities. “If something feels off, there’s a good chance it is,” McEwan advises. The impact of the 2022 FICA amend- ments The December 2022 amendments to the
Compliance done properly doesn’t have to slow you down,” he concludes. “In fact, when it’s built into your processes from the start, it can make your business stronger, safer and more efficient.
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