FIC Issues Final Guidance on Credit Provider Definition under FICA

Posted 31 March 2026 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: The Financial Intelligence Centre (FIC) has finalised guidance on the interpretation of ‘credit provider’ within the context of the **Financial Intelligence Centre Act, No. 38 of 2001**.

In terms of the **Financial Intelligence Centre Act, No. 38 of 2001**, the FIC has issued a final compliance communication clarifying the scope and practical application of Item 11 of Schedule 1. This item defines a ‘credit provider’ as any person who carries on the business of providing credit to any person. The revised Schedule 1, which incorporated these changes, originally came into effect in December 2022.

The final communication is the result of a consultation period that commenced in December 2022. A second draft was circulated for comment in December 2024, and the final version includes a consultation feedback document addressing stakeholder concerns regarding the definition’s breadth and its application to various business models.

Key Interpretative Areas

  • The distinction between incidental credit and ‘carrying on the business’ of providing credit.
  • The application of FICA obligations to entities already regulated under the **National Credit Act, No. 34 of 2005**.
  • The registration requirements for entities falling within the expanded definition of Item 11.
  • The specific criteria used to determine when a person is considered to be providing credit as a business activity.

Click here to view the compliance communication and feedback document.

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

  • For yourself: No direct individual obligations; impact is channelled through firm-level compliance and professional advisory responsibilities regarding FICA registration.
  • For your business: You must conduct a formal assessment of any credit-extending activities against the FIC’s ‘business’ criteria to determine if your firm must register as an accountable institution and implement AML/CFT controls.
  • For your clients: Advise clients who provide credit—including those not traditionally viewed as financial institutions—to review their status under Item 11 of Schedule 1 to ensure they meet mandatory FICA registration and reporting requirements.

Originally published at https://legalacademy.co.za/news/read/credit-provider-scope-interpretation-fica-issues-final-compliance-communication

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.