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Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001)

Regulations

Money Laundering Control Regulations

Exemptions

Part 2 : Exemptions for insurance and investment providers

 

 

7) Exemption from Parts 1 and 2 of Chapter 3 of Act 38 of 2001

 

1) Every accountable institution which performs the functions of an accountable institution referred to in items 5, 8, 12, 17 and 18 of Schedule 1 to the Act is exempted, in respect of those functions, from compliance with the provisions of Parts 1 and 2 of Chapter 3 of the Act in respect of every business relationship or single transaction concerning –
a) any long term insurance policy which is a fund policy or a fund member policy as defined in the Long-term Insurance Act, 1998 and the regulations thereto and in respect of which the policyholder is a pension fund, provident fund or retirement annuity fund approved in terms of the Income Tax Act, 1962;
b) any unit trust or linked product investment effected by a pension fund, provident fund or retirement annuity fund approved in terms of the Income Tax Act, 1962, including an investment made to fund in whole or in part the liability of the fund to provide benefits to members or surviving spouses, children, dependants or nominees of members of the fund in terms of its rules;
c) any annuity purchased as a compulsory annuity in terms of the rules of a pension fund, provident fund or retirement annuity fund approved in terms of the Income Tax Act, 1962;
d) any reinsurance policy issued to another accountable institution;
e) any long-term insurance policy classified in terms of the Long-term Insurance Act, 1998 as an assistance policy;
f) any long term insurance policy which provides benefits only upon the death, disability, sickness or injury of the life insured under the policy;
g) any long-term insurance policy in respect of which recurring premiums are paid which will amount to an annual total not exceeding R25 000,00, subject to the condition that the provisions of Parts 1 and 2 of Chapter 3 of the Act have to be complied with in respect of every client –
i) who increases the recurring premiums so that the amount of R25 000,00 is exceeded;
ii) who surrenders such a policy within three years after its commencement; or
iii) to whom that accountable institution grants a loan or extends credit against the security of such a policy within three years after its commencement;
h) any long term insurance policy in respect of which a single premium not exceeding R 50 000,00 is payable, subject to the condition that the provisions of Parts 1 and 2 of Chapter 3 of the Act have to be complied with in respect of every client –
i) who surrenders such a policy within three years after its commencement; or
ii) to whom that accountable institution grants a loan or extends credit against the security of such a policy within three years after its commencement;
i) any contractual agreement to invest in unit trust or linked product investments in respect of which recurring payments are payable amounting to an annual total not exceeding R 25 000,00, subject to the condition that the provisions of Parts 1 and 2 of Chapter 3 of the Act have to be complied with in respect of every client who liquidates the whole or part of such an investment within one year after the making of the first payment;
j) any unit trust or linked product investment in respect of which a once-off consideration not exceeding R 50 000,00 is payable, subject to the condition that the provisions of Parts 1 and 2 of Chapter 3 of the Act have to be complied with in respect of every client who liquidates the whole or part of such an investment within one year after the making of the first payment;
k) any other long term insurance policy on condition that within the first three years after the commencement of the policy the surrender value of the policy does not exceed twenty per cent of the value of the premiums paid in respect of that policy.

 

2) Every accountable institution which performs the functions of an accountable institution referred to in items 4, 15, 17 and 18 is exempted, in respect of those functions, from compliance with the provisions of Parts 1 and 2 of Chapter 3 of the Act in respect of transactions in securities listed on a stock exchange (as defined in the Stock Exchanges Control Act, 1985) or a financial market (as defined in the Financial Markets Control Act, 1989) for a pension fund, provident fund or retirement annuity fund approved in terms of the Income Tax Act, 1962, including investments in such securities made to fund in whole or in part the ability of the fund to provide benefits for members, surviving spouses, children, dependants or nominees of members of the fund in terms of its rules.