FIC Issues Guidance for High-Value Goods Dealers

Posted 23 February 2026 Written by Acts Online
Category FICA

Brought to you by SA Accounting Academy: The Financial Intelligence Centre (FIC) has published guidance to assist high-value goods dealers in identifying and mitigating risks related to money laundering, terrorist financing, and proliferation financing.

In terms of the Financial Intelligence Centre Act, No. 38 of 2001 (the FIC Act), the FIC is raising awareness among dealers in high-value goods regarding their role in South Africa’s anti-money laundering and counter-terrorism financing (AML/CFT) framework. This follows the expansion of the list of accountable institutions in Schedule 1 of the Act, which now includes various entities dealing in high-value items.

The guidance focuses on three specific financial crime categories that accountable institutions must monitor:

  • Money Laundering (ML): The process of concealing the nature, source, location, or ownership of proceeds of crime to make them appear legitimate.
  • Terrorist Financing (TF): The collection or provision of funds with the intention that they be used to support terrorist acts, organizations, or individual terrorists.
  • Proliferation Financing (PF): The act of providing funds or financial services for the manufacture, acquisition, possession, development, export, or use of nuclear, chemical, or biological weapons and their means of delivery.

High-value goods dealers are frequently targeted by criminals seeking to launder illicit gains through the purchase of portable, high-value assets. Under the Financial Intelligence Centre Act, No. 38 of 2001, these entities are required to implement a Risk Management and Compliance Programme (RMCP) and perform customer due diligence to prevent their businesses from being used for financial crime.

The FIC encourages all relevant role players to regularly review the compliance updates and risk mitigation measures provided on the official regulatory platform to ensure they meet their statutory reporting and record-keeping obligations.

Click here to view the guidance on the Financial Intelligence Centre website.

What this means for you, your business, or your clients

  • For yourself: You must maintain a technical understanding of the distinction between ML, TF, and PF to ensure that any reports filed under section 29 of the Financial Intelligence Centre Act, No. 38 of 2001 are accurately categorised.
  • For your business: If your firm deals in high-value goods, you must ensure your registration as an accountable institution is current and that your RMCP specifically addresses the risk of proliferation financing, which is often less understood than money laundering.
  • For your clients: Clients operating in the retail, automotive, or luxury goods sectors must be advised that failure to identify the source of funds for high-value transactions may result in significant administrative sanctions and penalties under the FIC Act.

Originally published at https://accountingacademy.co.za/news/read/fic-what-is-money-laundering-terrorist-financing-and-proliferation-financing

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.