Everything You Need to Know About the RMCP

Key Takeaways

• All accountable institutions must file an RMCP with the Financial Intelligence Centre (FIC)
• Financial sanctions will be imposed for non-compliance after 12 March 2025
• An RMCP establishes guidelines to ensure compliance with the Financial Intelligence Centre Act
• Accountable institutions include legal practitioners, trust services, gambling institutions, and crypto asset service providers
• OAK Law can assist with drafting and filing compliant RMCP documents

Introduction

The Financial Intelligence Centre Act imposes certain obligations on accountable institutions to report suspicious activity in order to prevent and combat financial crimes such as money laundering and terrorist financing. All accountable institutions are required to file a RMCP with FIC and financial sanctions will be imposed for non-compliance as from 12 March 2025.

OAK Law can assist you with drafting and filing of your RMCP.

What is RMCP?

A Risk Management and Compliance Programme, better known as the RMCP, is a document that establishes guidelines and procedures to ensure full compliance with the Financial Intelligence Centre Act. This document sets out the steps the accountable institution will take in order to identify, measure, monitor, manage and report the material risks to which the institution is exposed.

The RMCP must provide for all the requirements as set out in section 42 of the FIC act, such as:

• the manner in which the institution complies with section 20A;
• the manner in which and the processes by which the establishment and verification of the identity of the client will be performed;
• the manner in which the institution determines whether future transactions will be performed with specified clients;
• the manner in which the institution conducts additional due diligence;
• the manner in which the examining of unusual transitions will be done;
• the manner in which information will be confirmed;
• the manner in which an existing business relationship will be terminated;
• the manner in which the institution determines whether a client is an influential person;
• the manner in which records are kept;
• the determination whether an activity should be reported;
• the manner in which the RMCP is implemented.

What else is required?

Step 1: Your institution will need to be registered as an accountable institution with the FIC;
Step 2: A compliance officer needs to be appointed;
Step 3: You will need to draft the RMCP according to the specific requirements of the FIC act. The RMCP needs to be specific to your industry and your institution;
Step 3: Employees need to receive training regarding the RMCP and the FIC Act;
Step 4: Your institution needs to ensure that the appropriate governance measures are in place;
Step 5: Customer due diligence needs to be performed in line with your RMCP;
Step 6: Certain records need to be kept by your institution;
Step 7: Your institution needs to provide certain information to the FIC and report any suspicious activities.

Who is the RMCP For?

All accountable institutions are required to file a Risk Management and Compliance Programme with the Financial Intelligence Centre.
According to the FIC notice published on 4 March 2025, accountable institutions include legal practitioners, trust and company service providers including accountants, licensed gambling institutions including casinos, credit providers, the South African Postbank Limited, high-value gods dealers, SA mint Company (RF) (Pty) Ltd and crypto asset service providers.

Frequently Asked Questions (FAQs)

Do I qualify as an accountable institution?

Schedule 1 of the FIC act provides a definition and list of accountable institutions. If you are unsure if you fall within the definition, you can contact OAK Law who will assist you in determining whether you are an accountable institution or not.

When should the RMCP be filed?

FIC set a deadline to 12 March 2025. If you have not filed your RMCP, we urge you to do so as soon as possible.
The RMCP needs to be updated and resubmitted with FIC if any regulations change or the institution updated any internal procedures.

Who has access to the RMCP?

All employees of the institution should have access to the RMCP and should familiarise themselves with the process of identifying high risk clients and reporting requirements set out in the RMCP.
The Financial Intelligence Centre or supervisory body appointed by the FIC should be provided with the institution’s RMCP on request.

What if I don’t comply?

In terms of section 45C of the FIC Act, the Financial Intelligence Centre may impose administrative sanctions including financial penalties. Remedial directives can also be issued to the relevant institution.

Pros and Cons of contacting OAK LAW for assistance with your RMCP:

Pros: We have drafted and submitted RMCP documents successfully with the FIC and can assist with fast and easy compliance in this regard.
Cons: Your institution will still need to implement the program set out in the RMCP and the responsibility of reporting to the FIC will always be with the accountable institution.

How to Get Started with your RMCP

Simply contact our offices and inform us of your need for a RMCP complying the FIC requirements.

Conclusion

All accountable institutions will need to file a RMCP in order to comply with the FIC Act. Let OAK Law help you be compliant.

Give us a call on 012 345 3761 or send us an email at info@oaklaw.co.za to get started.