South Africa
1. Does South Africa have a sanctions regime in place?
Yes. South Africa adheres to the targeted financial sanctions (TFS) measures adopted by the United Nations Security Council (UNSC).
2. Does South Africa implement UN sanctions?
Yes.
3. Does South Africa implement an autonomous sanctions regime?
No.
4. What is the nature of the sanctions regime in South Africa?
The Financial Intelligence Centre Act (Act No. 38 of 2001) (FIC Act) places the responsibility to administer the TFS measures adopted by the UNSC in its Resolutions on the ‘Financial Intelligence Centre’ (FIC). This inclusion of TFS measures is, amongst other things, as a result of Recommendation 7 of the Financial Action Task Force (FATF) Recommendations, which requires member countries to implement TFS proposed by the UNSC in the context of combating the financing of the proliferation of weapons of mass destruction. The use of TFS by the UNSC also extends beyond instances relating to the financing of the proliferation of weapons of mass destruction and the relevant provisions of the FIC Act aim to enable South Africa to meet these international obligations. TFS measures restrict sanctioned individuals and entities from having access to funds and property under their control and from receiving financial services concerning such funds and property. For these sanctions to be given effect the FIC Act requires ‘Accountable Institutions’ to freeze property and transactions of individuals and entities under sanctions imposed in the UNSC Resolutions. TFS provide for financial sanctions only.
5. Does South Africa maintain a list of sanctioned individuals and entities?
Yes. The FIC publishes and maintains a list of sanctioned individuals and entities which is available on its website www.fic.gov.za.
6. Are there any other lists related to sanctions?
No.
7. Does South Africa have a licensing or authorization system in place?
Yes. The Minister of Finance may permit certain financial services or dealings involving the property of sanctioned individuals or entities.
8. What are the consequences for a breach of sanctions in South Africa?
A person guilty of failing to report a transaction involving a sanctioned individual or entity in terms of the FIC Act is liable to a fine not exceeding R100 million or to imprisonment for a period not exceeding 15 years. An administrative fine of up to R50 million or imprisonment of up to 5 years can also be applicable.
9. Who are the relevant regulators in South Africa and what are their contact details?
Financial Intelligence Centre Physical address: Doringkloof, Centurion, 0157 Postal address: Private Bag X177, Centurion, 0046 T: +27 12 641 6000 W: www.fic.gov.za
Contributor law firm
Sarah-Jane Pluke
Partner and Head of the Intellectual Property Department in South Africa
Tatenda Nhemachena
Associate
Eversheds Sutherland,
3rd Floor, 54 Melrose Boulevard,
Melrose Arch, Melrose North
2196 Johannesburg,
South Africa
T: +27 10 003 1470
M: +27 82 457 8835 sarajanepluke@eversheds-sutherland.co.za
T: +27 10 003 1388
M: +27 78 068 3610
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