Complying with Changes in Legislation

Directives

The Centre may by notice in the Gazette, issue a directive to all institutions to whom the provisions of this Act apply, regarding the application of this Act.

The Centre or a supervisory body may, in writing, issue a directive to any category of accountable institutions, reporting institutions, or other category of persons to whom the provisions of the Act apply to:

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  Provide information, reports or statistical returns specified in the notice, within the period specified in the notice;
  
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  Cease or refrain from engaging in any Act, omission or conduct in contravention of the Act;
  
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  Remedy an alleged non-compliance;
  
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  Meet obligations imposed by the Act.
  

The cost incurred in complying with a directive must be borne by the accountable institution, reportable institution, or other person concerned.

A supervisory body may issue a directive only after consulting the Centre on the directive.

Registration by accountable institution and reporting institution

Every accountable institution and every reportable institution must within the prescribed period register with the Centre.

The Centre must keep and maintain a register of every accountable institution and reportable institution registered with the centre.

A registered accountable institution or reportable institution must notify the Centre, in writing, of any changes to the particulars within 90 days after such a change.

Responsibility for supervision of accountable institutions

Section 45 is amended by the inclusion of subsection (1).

Every supervisory body is responsible for supervising and enforcing compliance with this Act or any order, determination or directive made in terms of this act by all accountable institutions, regulated or supervised by it.

The obligation forms part of the legislative mandate of any supervisory body and constitutes a core function of that supervisory body.

A supervisory body may utilise any fees or charges it is authorised to impose or collect to defray expenditure incurred in performing its obligations.

A supervisory body can:

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  Require an accountable institution supervised or regulated by it to report on that institution’s compliance;
  
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  Issue or amend any licence, registration, approval or authorisation;
  
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  In making a determination as to whether a person is fit and proper to hold office in an accountable institution, take into account any involvement, whether directly or indirectly, by that person in any non-compliance with this Act or any involvement in any money laundering, terrorist or related activity.

  A supervisory body must report in writing to the Centre on any action taken against any accountable institution.

  
  

Appointment of inspectors

The Director or head of the supervisory body:

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  May appoint any person in the service of the Centre or supervisory body as an inspector;
  
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  May determine the remuneration to be paid to such a person;
  
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  Must issue a certificate of appointment signed by the director or head of the supervisory body.

  The certificate of appointment must specify:

  
  
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  The full name of the person;
  
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  ID number;
  
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  Signature;
  
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  Photograph;
  
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  Description of capacity;
  
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  Extent of powers.

  An inspector may undertake inspections in terms of section 45B.

  When an inspector undertakes inspections he / she must be in possession of a certificate of appointment, and on request show that certificate to any person affected.
  

Inspections

An inspector may:

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  At any reasonable time and on reasonable notice enter and inspect any premises of an accountable institution, reportable institution or other person;
  
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  In writing direct a person to appear for questioning before the inspector at a time and place determined by the inspector;
  
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  Order any person who had any document in his or her possession or under his / her control to produce that document;
  
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  Open a strong room, safe or other container, or order any person to open it;
  
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  Use any computer system or equipment on the premises or require reasonable assistance from any person on the premises to use that computer system to access any data or to reproduce any document;
  
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  Examine or make extracts from or copy any documentation or remove any documentation;
  
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  Seize any document which in the opinion of the inspector constitutes evidence of non-compliance.

  An accountable institution, reportable institution or other person must without delay provide reasonable assistance to an inspector.

  The Centre or supervisory body may recover all expenses incurred in conducting an inspection from the accountable institution, reportable institution or other person.
  

An inspector may not disclose to any person not in the service of the Centre or supervisory body any information obtained in the performance of his / her functions.

An inspector may disclose information in the following circumstances:

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  For the purpose of enforcing compliance;
  
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  For the purpose of legal proceedings;
  
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  When required to do so by a court;
  
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  If it is in the public interest to disclose.

  An inspector of a supervisory body may conduct any inspection, other than a routine inspection, only after consultation with the Centre.

  No warrant is required for the purposes of an inspection in terms of this section.
  

Administrative sanctions

The Centre or supervisory body may impose an administrative sanction to any accountable institution, reporting institution or other person when satisfied on available facts and information that the institution or person has failed to comply with:

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  A provision of this Act;
  
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  A condition of a licence, registration, approval or authorisation issued or amended;
  
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  A directive issued;
  
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  A non-financial administrative sanction.

  When determining an appropriate administrative sanction the following factors must be considered:

  
  
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  The nature, duration, seriousness and extent of the relevant non-compliance;
  
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  Whether the institution or person has previously failed to comply with any law;
  
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  Any remedial steps taken by the institution or person to prevent a recurrence of the non-compliance;
  
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  Any steps taken or to be taken against the institution or person by:
  
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    Another supervisory body; or
    
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    A voluntary association of which the institution or person is a member.
    
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  Any other relevant factor, including mitigating factors.

  The Centre or supervisory body may impose any one or more of the following administrative sanctions:

  
  
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  A caution not to repeat the conduct which led to the non-compliance;
  
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  A reprimand;
  
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  A directive to take remedial action or to make specific arrangements;
  
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  The restriction or suspension of certain specified business activities; or
  
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  A financial penalty not exceeding R 10 million in respect of natural persons and R 50 million in respect of any legal person.

  The Centre or supervisory body may:

  
  
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  Make recommendations to the relevant institution or person in respect of compliance with this Act;
  
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  Direct that a financial penalty must be paid by a natural person or persons for whose actions the relevant institution is accountable in law, if that person or persons was or were personally responsible for the non-compliance;
  
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  Suspend any part of an administrative sanction on any condition the Centre or the supervisory body deems appropriate for a period not exceeding five years.

  Before imposing an administrative sanction, the Centre or supervisory body must give the institution or person reasonable notice in writing:

  
  
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  Of the nature of the alleged non-compliance;
  
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  Of the intention to impose an administrative sanction;
  
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  Of the amount or particulars of the intended administrative sanction.

  The institution or person may, in writing, within a period specified in the notice, make representations as to why the administrative sanction should not be imposed.

  After considering any representations the Centre, or supervisory body may impose an administrative sanction the Centre or supervisory body considers appropriate.

  Upon imposing the administrative sanction the Centre or supervisory body must, notify the institution or person in writing:

  
  
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  Of the decision and the reasons therefore; and
  
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  Of the right to appeal against the decision.

  The Centre must, prior to taking a decision consult the relevant supervisory body, if applicable.

  Any financial penalty imposed must be paid into the Criminal Assets Recovery Account.

  If the institution or person fails to pay the financial penalty within the specified period and an appeal has not been lodged within the required period, the Centre or supervisory body may forthwith file a certified copy of the notice with the clerk or registrar of a competent court, and the notice thereupon has the effect of a civil judgement lawfully given in that court in favour of the Centre or supervisory body.

  An administrative sanction may not be imposed if the respondent has been charged with a criminal offence in respect of the same set of facts.

  If a court assesses the penalty to be imposed on a person convicted of an offence in terms of this Act, the court must take into account any administrative sanction imposed under this section in respect of the same set of facts.

  Unless the Director or supervisory body is of the opinion that there are exceptional circumstances present that justify the preservation of the confidentiality of a decision the Director or supervisory body must make the decision and the nature of any sanction imposed public if:
  

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  An institution or person does not appeal against a decision of the Centre or supervisory body within the required period; or
  
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  The appeal Board confirms the decision of the Centre or supervisory body.