This is a decision by the Appeal Board concerning the appeal case Kunene Ramapala Incorporated vs. the Financial Intelligence Centre (FIC). The case revolves around Kunene Ramapala’s appeal against financial penalties imposed by the FIC due to non-compliance with the Financial Intelligence Centre Act (FIC Act).
Background: Kunene Ramapala was sanctioned for failing to implement a Risk Management and Compliance Programme (RMCP), conduct client screenings against financial sanctions lists, and meet deadlines for FIC registration and compliance returns. These lapses were deemed grossly negligent, resulting in penalties totaling R7,772,000.
Arguments and Findings:
· Appellant’s Position: Kunene Ramapala argued that they had since complied and that the penalties were excessive, given their limited awareness of obligations and cooperation in the inspection.
· FIC’s Position: The FIC highlighted Kunene’s long-standing non-compliance, delayed response to rectification notices, and argued that penalties were proportional, considering the firm’s annual turnover.
· Appeal Board: The Board found the penalties reasonable and proportionate, noting that subsequent compliance doesn’t negate the need for sanctions.
Decision: The appeal was dismissed, and Kunene Ramapala was ordered to pay the full penalty within two months.
