Complying with Changes in Legislation

1. Complying with Changes in Legislation September and October 2010

2. Agenda

3. FICA

4. Money Laundering Legislation Reporting obligation Defines: Money laundering offence

5. Definition

6. Financial Intelligence Centre Collect Process Analyse Law Enforcement Agencies

7. Reporting obligations Report to FIC

8. Duties of accountable institutions Above prescribed limit Also Reportable Institution Details of transfer After transfer Report on demand

9. Administrative duties for accountable institutions

10. Directives Cost borne by institution Only after consulting with Centre Accountable institutions, reportable institutions, other persons

11. Registration of institutions Notify FIC of any changes within 90 days

12. Responsibility of supervisory body Administrative sanctions: Not to repeat conduct Reprimand Remedial action Restriction or suspension Penalty: Individual: R 10 mil Company : R 50 mil Process to be followed May appeal

13. Appointment of inspectors No warrant is necessary Issue certificate of appointment Must consult with Centre Institution liable for any costs involved

14. Compliance and enforcement

15. Draft Regulation of Tax Practitioners Bill

16. Application of Act Applicable to Not applicable to:

17. Registration Do not register Register

18. Approval of application Board to enter name in register and to issue certificate Board must approve if: Will not approve if:

19. Duties of tax practitioners May not Must

20. Disciplinary practices Cannot question unless informed of following rights: Has the right to be assisted or represented by another person; and Is not obliged to make any statement and that any statement made may be used in evidence against that tax practitioner.

21. FAIS

22. Purpose of Act

23. Definition of advice

24. Advice vs. intermediary services

25. What is FSP? Duties • Display certified copy of license in prominent place • Include reference to license in all documentation • Advise registrar of lapsing of license • Permanent incapable of carrying on business • Sequestrated • Dies • Liquidated • Business is dormant • Appoint compliance officer Excluding a representative

26. Representatives May only Act if: FSP must:

27. Accounting and audit requirements External auditor must be approved by Registrar Irregularities reported Reasons for termination as auditor May only change year end with approval of Registrar 10 Different compliance reports Different submission dates per category

28. Fit and proper requirements

29. Fit and proper requirements

30. Professional Indemnity and Fidelity Insurance

31. Financial interest and conflict of interest

32. Financial interest and conflict of interest

33. National Credit Act

34. Statutory bodies Independent

35. Consumer rights

36. Registration requirements No natural persons Duties of NCR Certificate of registration Enter in register Assign unique registration number Fit and proper No juristic person

37. Types of agreements

38. Included transactions

39. Excluded transactions > R 1 000 000

40. Unlawful and Reckless Agreements • Cannot sue • Must refund: • Monies paid • Interest per quote Credit provider

41. Pre-agreement statements Prescribed forms for all agreements

42. Cost of Credit As per court tariffs For monthly and annual, transactions May not exceed outstanding obligation Cover reduce with decrease in outstanding balance Limited to cost of letter

43. Right to receive statements

44. Changes, termination, early payments

45. Surrender of goods, debt enforcement

46. Debt counseling

47. Compliance and Reporting > R 15 mil – Quarterly < R 15 mil – 15th February 6 months after year end

48. Consumer Protection Act

49. Background

50. Scope of the Act