FIC Screening: What It Means for You as a TLOK Client
If you are a TLOK client and have been asked to provide certain information or complete FIC screening, you may be wondering why this is necessary, particularly if you have been a client of ours for many years.
As an Accountable Institution, TLOK Accountants is required to carry out certain client due diligence checks. In simple terms, this means making sure we have the right information about our clients and are aware of any potential risks.
As part of our compliance obligations, we are required to collect and verify certain information and, where applicable, conduct screening of clients and associated individuals against sanctions lists, as well as identify Politically Exposed Persons (PEPs), Prominent Influential Persons (PIPs), and other potential financial crime risks.
The key point to note is that being asked to complete these checks does not indicate any concern regarding you or your business. Rather, these are ongoing regulatory compliance requirements that we are obliged to apply consistently across all applicable clients, including those with whom we have had a long-standing relationship.
What is sanctions screening?
Sanctions screening involves checking relevant individuals and entities against applicable sanctions lists. These lists contain the names of individuals, businesses and organisations that are subject to certain restrictions by governments or international organisations.
The purpose of the screening is simply to see whether there are any potential matches that may need to be looked into further.
It is important to remember that a potential match does not mean that the person or business has done anything wrong. Names can be similar or even exactly the same, so a result may simply be a false match.
If a potential is identified during the screening process, we may need to look at additional information, such as an ID number, date of birth or other identifying details, to determine whether the match relates to the same individual or entity. This forms part of our efforts to ensure the accuracy and reliability of the screening results.
What are sanctions lists?
Sanctions lists are lists of individuals, businesses and organisations that have been identified by governments or international organisations as being subject to certain restrictions.
These restrictions can relate to matters such as:
- Terrorism or terrorist financing
- Money laundering
- Organised crime
- Human rights violations
- Threats to international peace and security
The purpose of these lists is to help prevent individuals or organisations involved in certain activities from accessing financial services or moving money through the financial system.
As part of our FICA obligations, we are required to screen our clients and relevant individuals against applicable sanctions lists. This is simply one of the checks we carry out to help us meet our financial crime compliance responsibilities.
Is FIC screening the same as a criminal record check?
No.
FIC screening and a criminal record check are two different processes and serve different purposes.
Can I refuse to participate in FIC screening?
As an Accountable Institution, TLOK Accountants is required to complete certain FIC checks as part of our obligations under FICA.
To comply with these requirements, we must obtain and verify specific client information. Where we are unable to obtain the necessary information, or if the information cannot be adequately verified, we may regrettably be unable to continue providing our services or maintain the client relationship, as required by law.
What does this mean for you?
We understand that compliance checks can sometimes feel unnecessary, particularly when you have been a client of TLOK for many years.
However, these screening requirements form part of our ongoing responsibilities as an Accountable Institution. They help us meet our FICA obligations and ensure that we maintain the appropriate compliance processes within our practice.
Being asked to complete FIC screening does not mean that we suspect you of wrongdoing.
It is simply a standard compliance requirement that applies to our clients and relevant individuals.
We appreciate your cooperation and understanding as we continue to meet our regulatory obligations and keep our client information and compliance processes up to date.
Please feel free to contact TLOK if they have questions about the screening process.
(011) 794-5582 | info@tlok.co.za