FICA Compliance for Tax Practitioners: Are You at Risk?

FICA Compliance for Tax Practitioners: Are You at Risk?

• 25 June 2025
• Corporate Tax
• Caryn Maitland

Most tax practitioners are laser-focused on staying compliant with SARS, meeting deadlines, interpreting legislation, and guiding clients through complex tax scenarios. But there’s another critical area of compliance that often gets overlooked in the daily busyness of practice management: the Financial Intelligence Centre Act (FICA).

If your practice offers tax consulting, advisory, or related services, chances are you fall within the definition of an Accountable Institution under FICA. This includes not only traditional financial service providers, but also legal, accounting, and tax professionals who offer services that carry a risk of being abused for money laundering or terrorist financing purposes.

What Does This Mean in Practical Terms?

You have a legal obligation to implement and maintain an anti-money laundering and counter-terrorist financing (AML/CTF) framework appropriate to the size, nature, and complexity of your business. This isn’t a one-size-fits-all model. It includes performing Client Due Diligence (CDD), developing a Risk and Compliance Programme (RCP), appointing a Compliance Officer, training staff, and reporting suspicious or unusual transactions to the Financial Intelligence Centre (FIC).

Many practitioners assume these requirements are only relevant to the banking sector or large corporate entities. But the reality is that even a small, well-meaning tax practice can be exposed to money laundering risks. If you assist clients with structuring transactions, setting up entities or trusts, dealing with foreign income, cryptocurrency, or complex ownership chains, you are firmly in the risk zone.

Let’s not forget South Africa’s greylisting by the Financial Action Task Force (FATF). In response, the FIC has ramped up inspections, placed greater emphasis on compliance monitoring, and is actively engaging with Accountable Institutions across all professional sectors. The days of claiming "I didn’t know" or “we’re too small” are over.

Self-Assessment: Are You Compliant?

Here are a few practical questions every tax practitioner should be asking:

• Have we formally registered with the FIC as an Accountable Institution?
• Do we have a written, reviewed, and fit-for-purpose Risk and Compliance Programme?
• Are we consistently performing and documenting Client Due Diligence for all new and existing clients?
• Have our staff been trained to recognise red flags and escalate concerns appropriately?
• Are we able to identify the beneficial owner of every client entity—and are we keeping adequate records?
• Do we understand how (and when) to submit a Suspicious Transaction Report (STR) or Suspicious Activity Report (SAR)?

The reality is, you may not always know when a client is engaged in illicit activity. But the law expects you to have processes in place to detect and respond to warning signs. Failing to report a suspicious transaction could result in administrative sanctions—or even criminal charges.

Why This Matters Beyond Compliance

FICA compliance isn’t just about risk mitigation. It’s also about reinforcing the integrity of your practice. Demonstrating that your firm takes AML obligations seriously strengthens your credibility with clients, stakeholders, and regulators. It also future-proofs your business in an environment where regulatory expectations are rising.

If you’re unsure where your firm stands, the time to assess and act is now. Review your policies, train your staff, document your due diligence, and, if needed, seek professional advice on how to bring your practice into compliance.

In the world of financial intelligence, it’s far better to be ahead of the game than to be caught unprepared.

Learn how to meet your FICA obligations as a tax practitioner and avoid compliance pitfalls in our upcoming webinar. Register now to secure your spot.

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