FICA, the Financial Intelligence Centre Act, exists to prevent money laundering and the financing of terrorism, and it applies to a genuinely wider range of businesses than most owners initially realise, making it worth understanding even if a business isn’t in an obviously regulated sector.
These are the fundamentals every affected SME genuinely needs to understand.
Which businesses FICA genuinely applies to
FICA applies to accountable institutions specifically defined in the Act, which includes businesses beyond the obvious banks and financial institutions, such as certain property practitioners, legal and accounting professionals, and other specified categories.
Confirming whether a specific business genuinely falls under one of these defined categories is worth doing directly rather than assuming FICA is only a banking concern.
What genuine compliance actually requires
An accountable institution needs to verify client identities, keep proper records, and report certain suspicious or high-value transactions, building these steps into standard business process rather than treating them as an occasional formality.
This record-keeping discipline connects directly to broader financial management good practice, not just this specific legal requirement.
The genuine consequences of non-compliance
Non-compliance carries real risk of significant penalties and reputational damage, and this risk applies regardless of business size once a business genuinely falls under FICA’s defined scope.
Understanding this risk clearly is worth the relatively modest effort of building proper compliance processes from the start.
Confirm the specific requirements that genuinely apply
The Financial Intelligence Centre publishes the current, specific guidance on which businesses are covered and what compliance genuinely requires.
Checking this directly, rather than relying on assumption, is the most reliable way to confirm a specific business’s actual obligations.
Frequently asked questions
What is FICA?
The Financial Intelligence Centre Act, which exists to prevent money laundering and the financing of terrorism.
Does FICA only apply to banks?
No, it applies to a range of defined accountable institutions, including certain property, legal and accounting businesses among others.
What does FICA compliance genuinely require?
Verifying client identities, keeping proper records, and reporting certain suspicious or high-value transactions.
What happens for non-compliance?
Real risk of significant penalties and reputational damage, regardless of business size, once a business falls under FICA’s scope.
Where can specific FICA requirements be confirmed?
Through the Financial Intelligence Centre, which publishes current, specific guidance on covered businesses and requirements.
