SAIA

South African Insurance Association

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Further update on the Financial Intelligence Centre’s proposal to include short-term insurers as Accountable Institutions

The Financial Intelligence Centre (FIC) Working Group comprises of the following representatives from:

a) SAIA;
b) Financial Intermediaries Association (FIA);
c) South African Underwriting Managers Association (SAUMA);
d) Insurance Crime Bureau (ICB);
e) FSCA;
f) Prudential Authority (PA);
g) NT; and
h) FIC.

The Working Group met on 16 July 2018 and 13 September 2018 and has finalised the Terms of Reference for the Working Group. SAIA completed the Request for Proposal (RFP), in conjunction with other stakeholders of the Working Group, which was issued to prospective service providers to conduct the risk assessment.

Service providers submitted their proposals on 5 November 2018. SAIA, FIA, ICB and SAUMA will determine a process for service providers to be shortlisted and will advise the SAIA Board Committee: Governance Risks of same before embarking on the process. The proposed cost of the risk assessment will be presented to the Board Committee for approval once a service provider has been selected for appointment.

The FIC stated that the proposal, to include non-life insurers as Accountable Institutions, would be suspended pending the outcome of the risk assessment. Accordingly, the FIC requested that SAIA, FIA and SAUMA create awareness of the process should the FIC approach members for customer level information whilst the risk assessment is being conducted. SAIA will communicate to its members by way of the monthly SAIA Bulletin. 

SAIA, FIA, SAUMA and the ICB will explore interim measures to provide the FIC with customer level information whilst the risk assessment is being conducted.

However, the outcome of the risk assessment will be the final determining factor in respect of non-life insurers becoming Accountable Institutions in terms of the FIC Act.

SAIA, FIA SAUMA and the ICB will discuss with the FIC, PA and FSCA, interim measures for information sharing with the FIC, at the next Working Group meeting on 27 November 2018.

For more information contact:
Easvarie Naidoo, SAIA Senior Legal Manager
Easvarie@saia.co.za