Harith fined R1.7m

PENALTY: FINANCIAL SERVICES FIRM DOES NOT COMPLY WITH FICA >>> Among breaches it did not conduct due diligence on clients.

- Ina Opperman

The Financial Sector Conduct Authority (FSCA) has fined Harith General Partners R1.7 million for not complying with certain provisions of Fica.

The company had no risk management and compliance programme and failed to conduct proper due diligence on clients.

FSCA imposed the administrative penalty on Harith General Partners for failing to comply with certain provisions of the Financial Intelligence Centre Act (Fica).

Harith is a licenced financial services provider (FSP) under the Financial Advisory and Intermediary Services Act (Fais Act) and an accountable institution under Fica.

FSCA is responsible for supervising and enforcing FSP compliance with Fica that aims to combat money laundering, the financing of terrorism and other related criminal activities. All accountable institutions designated under Fica must comply fully with its requirements.

When FSCA conducted an inspection on Harith as part of its ongoing supervisory activities in terms of Section 45B of Fica, it found that Harith was in breach of these sections of Fica: