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Revision of the cash transaction reporting threshold in terms of the financial intelligence centre act

The Minister of Finance, Mr Enoch Godongwana, has, in terms of Section 77(1)(a) of the Financial Intelligence Centre Act, 2001 (Act 38 of 2001) (FIC Act), revised the threshold for cash transaction reporting (CTR) contained in the Money Laundering and Terrorist Financing Control (MLTFC) Regulations.

The amended was published in Government Notice No. 2638 as published in Government Gazette No. 47302 on Friday, 14 October 2022.

The key changes to the CTR framework approved by the Minister are:

  • The new threshold for reporting cash transactions will be effective from 14 November 2022.
  • The cash threshold is increased from R 25 000.00 to R 50 000.00.
  • The threshold of R 50 000.00 must still be reported within 2 (two) to 3 (three) business days from the date on which the accountable or reporting institution, or any of their employees, have become aware of the transaction.
  • The abolition of the requirement to report on CTR aggregation (CTRA). Currently, cash transactions where a single client has performed multiple transactions with a combined value of R 25 000.00 and above within a defined period are reportable as one report. With the revised regulations, this will no longer be a requirement. It is anticipated that the removal of the aggregation requirement will not negatively affect the generation of financial intelligence information, as split transactions that are suspicious and unusual would be reportable in terms of section 29 of the act (suspicious or unusual transactions).

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