FIC Clarifies Beneficial Ownership Obligations under FICA

Posted 23 March 2026 Written by Acts Online
Category Compliance

Brought to you by SA Accounting Academy: The Financial Intelligence Centre (FIC) has reiterated the mandatory beneficial ownership requirements for accountable institutions to prevent the abuse of corporate structures for illicit activities.

In terms of section 21B of the Financial Intelligence Centre Act, No. 38 of 2001 (FIC Act), accountable institutions listed under Schedule 1 must identify the beneficial owners of clients that are legal persons, trusts, or partnerships. This obligation requires identifying the ‘warm body’ — the natural person — who ultimately holds controlling ownership or exercises control over the legal entity or arrangement.

These regulatory measures align South Africa with international standards set by the Financial Action Task Force (FATF). Specifically, FATF Recommendations 24 and 25 require countries to ensure that competent authorities have access to adequate, accurate, and timely information on the beneficial ownership of legal persons and arrangements. The FIC has provided comprehensive guidance on these duties in Public Compliance Communication 59 (PCC 59).

Key Compliance Requirements

  • Accountable institutions must identify the natural person(s) who own or control a client that is a legal person, trust, or partnership.
  • Reasonable steps must be taken to verify the identity of these beneficial owners so that the institution is satisfied it knows who the beneficial owner is.
  • Compliance is mandatory for all entities listed in Schedule 1 of the FIC Act when establishing a business relationship or conducting a single transaction.

Click here to download Public Compliance Communication 59 on Beneficial Ownership.

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

  • For yourself: You must maintain a technical understanding of the multi-layered definitions of ‘control’ and ‘ownership’ as applied in section 21B to ensure professional due diligence standards are met.
  • For your business: Your firm must update its Risk Management and Compliance Programme (RMCP) to include specific, documented procedures for identifying and verifying natural persons behind corporate structures.
  • For your clients: Clients operating through complex company or trust structures must be informed that they are legally required to provide transparency regarding their ultimate natural person controllers to maintain their banking and professional service relationships.

Originally published at https://accountingacademy.co.za/news/read/fic-beneficial-ownership-obligations-for-business

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