With the southern hemisphere’s winter solstice behind us, it’s almost time to start looking towards the year-end break we all deserve. There’s still some time to get through a few of the planned or actual changes in the legislation though.
THE FINANCIAL SECTOR CONDUCT AUTHORITY (FSCA)
Competence register update deadline
A quick reminder that FSPs must update the Continuous Professional Development component of their Competence Registers by 30 June.
FSCA warnings
The FSCA has issued a public warning about fraudsters impersonating XM ZA (Pty) Ltd via WhatsApp to solicit investments from the public. The regulator confirmed that XM ZA is not associated with the group and reminded consumers to remain vigilant against unsolicited investment offers, particularly those promoted on social media, highlighting common red flags such as unrealistic returns, upfront payment requests, and pressure to act urgently.
Another public warning was issued regarding Aito Capital, which is allegedly misrepresenting itself as an authorised financial services provider (FSP) by using another firm’s FSP licence number. The FSCA confirmed that Aito Capital is not authorised to provide financial services in South Africa.
The FSCA has warned the public against TPG Joburg Nexus, which is not authorised to provide financial services in South Africa. Consumers are urged to exercise caution and verify authorisation status before investing.
The FSCA issued a public warning about Fast Profit Income, highlighting that it is not licensed to offer financial services and may be engaging in potentially fraudulent activities. Investors are advised to avoid dealing with the entity.
The FSCA has issued a public warning regarding individuals impersonating Alpha Wealth (Pty) Ltd, an authorised FSP, through a WhatsApp group promoting trading services and investments with promises of guaranteed returns. The regulator confirmed that Alpha Wealth is not associated with the individuals involved and urged consumers to be cautious of unsolicited investment offers on social media, particularly those promising unrealistic returns or requiring upfront payments.
The FSCA has also warned the public about a cloning scam involving individuals impersonating the regulator and its Commissioner, Unathi Kamlana. Fraudsters are reportedly using a fake FSCA email address to request payments from members of the public under the pretext of facilitating the release of funds. The FSCA confirmed that it never requests payments to release funds and urged consumers to ignore and report such communications.
The FSCA has provisionally withdrawn the licence of Mixirite (Pty) Ltd following preliminary investigation findings that raise concerns about potential harm to clients and the public. The regulator cited alleged aggressive and high-pressure sales tactics, the provision of financial advice by unauthorised individuals, promises of unrealistic or guaranteed returns, inadequate suitability assessments, and insufficient risk disclosures. As a result, Mixirite may no longer conduct financial services business or receive additional client funds while the investigation continues. The FSCA emphasised that the withdrawal is provisional and that Mixirite has been given an opportunity to make representations before a final decision is taken.
National Treasury proposes amendments to financial sector levies
National Treasury has published draft amendments to the schedules of the Financial Sector and Deposit Insurance Levies Act, 2022 for public comment.
The proposals generally provide for a 3.2% increase in the base levy amounts, variable levy rates, and maximum levy caps applicable to regulated financial institutions, including banks, insurers, pension funds, exchanges, collective investment schemes, and FSPs. Certain levy categories remain unchanged where no variable or maximum levy applies. The amendments would also result in corresponding increases to levies payable to the Ombud Council.
Stakeholders have until 8 July 2026 to submit comments via CommentDraftLegislation@treasury.gov.za.
FINANCIAL INTELLIGENCE CENTRE
FICA update: Understanding the newly commenced provisions
The recent publication of Proclamation Notice 317 of 2026 marks an important development in South Africa’s anti-money laundering and counter-terrorist financing framework. With effect from 1 July 2026, sections 30, 54, 55, and 70 of the Financial Intelligence Centre Act, 2001 (FICA) are now in force.
While these sections have existed in the legislation for some time, their commencement significantly strengthens the regulation of cross-border cash movements, reporting compliance, and enforcement powers.
At the centre of the amendments is section 30, which introduces a formal obligation to report the movement of cash and bearer negotiable instruments into and out of South Africa.
In simple terms, any person who physically carries, sends, or arranges the transportation of cash (or instruments such as traveller’s cheques or bearer securities) across South Africa’s borders is now required to declare this movement in line with prescribed thresholds and procedures. Although the operational detail will be driven by regulations and guidance, the intention is clear: authorities must have visibility over the cross-border movement of value.
Sections 54 and 55 introduce criminal consequences for failures to comply with FICA reporting duties.
Section 54 specifically addresses the new cross-border reporting obligation. It makes it a criminal offence to fail to report the movement of cash or bearer instruments, or to provide incomplete or false information when doing so.
Section 55, however, is broader in scope and arguably more significant for accountable institutions. It creates an offence for failing to submit any report required under FICA to the Financial Intelligence Centre. This includes not only cross-border reports, but also long-standing obligations such as suspicious transaction reports, cash threshold reports, and reports relating to terrorist property.
Complementing these obligations is the commencement of section 70, which equips authorities with enhanced enforcement powers. This provision allows for the search of persons, premises, and conveyances, as well as the seizure and potential forfeiture of cash or bearer negotiable instruments in circumstances where there is suspected non-compliance or unlawful activity. In practice, this is likely to be most visible at ports of entry and exit, where customs and law enforcement officials are positioned to detect undeclared cash movements.
Institutions should take this opportunity to revisit their Risk Management and Compliance Programmes to ensure that:
- Reporting processes are clearly defined and operationally embedded.
- Escalation procedures are effective and well understood.
- Staff are adequately trained to recognise reporting triggers, including those linked to cross-border activity.
There is also a need to sharpen awareness of client behaviour that may indicate increased risk. This includes clients who operate in cash-intensive sectors, engage in frequent cross-border travel, or use informal channels to move value.
Financial Intelligence Centre issues Draft Guidance Note 7B for consultation
The FIC has published draft Guidance Note 7B for public consultation, proposing technical updates to Chapter 1 of Revised Guidance Note 7A under the Financial Intelligence Centre Act. The draft expands references to proliferation financing alongside money laundering and terrorist financing, and provides further clarity on risk assessments, systems and controls, and the circumstances in which simplified due diligence may not be applied.
FIC executive appointed as Financial Action Task Force (FATF) working group co-chair
The FIC has announced the appointment of its Executive Manager for Compliance and Prevention, Christopher Malan, as co-chair of the Evaluations and Compliance Group (ECG) of the FATF. Effective 20 June 2026, Malan will serve a two-year term alongside Alvin Koh of Singapore, helping to oversee the FATF’s fifth round of mutual evaluations, which assess countries’ effectiveness in combating money laundering, terrorist financing, and proliferation financing.
The appointment is a significant recognition of South Africa’s expertise in anti-money laundering and counter-terrorist financing, with Malan bringing more than 25 years of regulatory experience and long-standing involvement in FATF evaluations. He will continue in his role at the FIC while serving as ECG co-chair.
Key FATF developments – June 2026
The FIC has issued a series of important communications following the FATF Plenary meetings held from 15 to 19 June 2026.
A key highlight from the Outcomes Notice is the FATF’s ongoing refinement of its global standards. Updates to Recommendation 6 now incorporate humanitarian exemptions to ensure that sanctions do not unintentionally hinder the provision of essential aid. In addition, the FATF is advancing work on payment transparency (Recommendation 16), crypto asset regulation, and emerging risks linked to decentralised finance platforms. These are areas of increasing relevance for South African institutions navigating cross-border and digital financial ecosystems.
Notably, the FATF continues to emphasise public-private collaboration and enhanced information sharing as critical tools in combating financial crime. A forthcoming global overview on partnership models is expected to support more actionable intelligence-sharing mechanisms between regulators and industry.
The Advisory on jurisdictions under increased monitoring highlights countries actively addressing strategic AML/CFT deficiencies, including Angola, Kenya, and Vietnam, among others. Institutions are reminded to consider these jurisdictions carefully when assessing risk exposure and applying appropriate due diligence measures. Encouragingly, Algeria and Namibia have exited the monitoring list following improvements to their frameworks.
Separately, the FATF’s Public Statement identifies high-risk jurisdictions: namely Democratic People’s Republic of Korea, Iran, and Myanmar, where significant deficiencies remain. In these cases, accountable institutions are urged to apply enhanced due diligence, and, where necessary, countermeasures to mitigate heightened risks. Particular vigilance is required regarding complex ownership structures, sanctions evasion tactics, and proliferation financing risks linked to these countries.
For South African financial institutions, these updates reinforce the importance of maintaining robust, risk-based compliance frameworks. Enhanced customer due diligence, vigilant transaction monitoring, and adherence to targeted financial sanctions remain essential to safeguarding the integrity of the financial system and meeting regulatory expectations.
PRUDENTIAL AUTHORITY (PA)
Selected South African Insurance Sector Data – March 2026
The PA released its latest periodic industry report in June. The reports shows that South Africa’s insurance industry remains well-capitalised and continues to grow, despite weaker investment returns and increased claims pressures in some segments. The number of registered insurance entities increased marginally to 159, with growth driven by life microinsurers.
Life insurers recorded strong balance sheet growth, with total assets increasing 16.4% year-on-year to R5.23 trillion and gross premiums rising 16.3%. However, profitability came under pressure as investment income turned negative amid market volatility, contributing to a 6.7% decline in net profit before tax. Claims ratios also increased, while policy lapse rates worsened.
The non-life sector remained resilient, with primary insurers growing assets by 16.6% and gross written premiums by 11%. Underwriting profitability improved, reflected in a lower combined ratio and a 20.8% increase in underwriting profit. Nevertheless, weaker investment performance resulted in a 12.5% decline in net profit before tax.
Across the industry, solvency levels remained comfortably above regulatory minimums, with most insurance sectors reporting stable or improved Solvency Capital Requirement cover ratios. The report highlights a sector that continues to demonstrate financial strength and capital resilience, despite heightened market volatility and pressure on investment returns
NATIONAL TREASURY (NT)
Fitch Ratings upgrade
South Africa received a significant sovereign credit rating boost on 5 June 2026, with Fitch Ratings upgrading the country’s long-term foreign and local currency ratings from BB- to BB, while maintaining a stable outlook.
The upgrade reflects improved fiscal discipline, sustained primary budget surpluses, stronger revenue collection, and progress in stabilising government debt levels.
This marks South Africa’s first Fitch Ratings upgrade in nearly 21 years and follows positive rating actions from S&P Global Ratings and Moody’s, with all three major agencies rating the country two notches below investment grade.
National Treasury highlighted that improved credit ratings can help lower borrowing costs across the economy and strengthen investor confidence. Government reaffirmed its commitment to fiscal consolidation and structural reforms, particularly in the energy and logistics sectors, with plans to introduce a formal fiscal anchor in the 2026 Medium Term Budget Policy Statement.
INFORMATION REGULATOR (IR)
Annual PAIA Report
And a reminder that the deadline for submission of the Annual PAIA Report is 30 June.
A-PROOFED
There are days in proofreading when you expect the usual nonsense: a comma that’s been freelancing in the wrong sentence, a word that has suddenly decided its American, a paragraph that clearly wrote itself at 2am and woke up full of regrets.
This wasn’t one of those days.
I opened the document and, within about 20 seconds, sat back and thought, “Okay… what exactly is this?”
Because there was no introduction.
Nothing to ease you in or set the scene., just a very confident heading sitting there like it’s done its job, while the actual content was nowhere to be seen. It’s a bit like arriving at a braai and finding only the folding chairs and cooler box. No meat, no fire, nobody in charge.
So I scroll.
At first I think maybe I’ve opened the wrong version. It happens. We’ve all been there. You open “FINAL_FINAL2_ACTUALLYFINAL” and hope for the best.
But no.
Page 3 arrived with another heading. Also empty. It was like someone had laid out the entire menu at Spur and forgotten to tell the kitchen.
Heading. No text. Heading. No text. The whole document radiated, This was definitely meant to be finished, but life got in the way.
At that point, I wasn’t proofreading anymore. I was trying to work out what I was looking at, because this isn’t spelling errors or formatting issues. This was a document that had shown up to work and left its brain at home.
So I email the client, very calmly, because I’ve been doing this long enough to know that panic isn’t a proofreading tool.
As it turned out, she’d sent the wrong document. Not a slightly earlier draft. Not a version that still needed a bit of work. Just the wrong document entirely. Gone. Finito. Sent with confidence.
And honestly, that explained everything. A missing introduction doesn’t gently suggest that something’s off. It tells you immediately, very clearly, that this isn’t the right document.
The funny part is how quickly you still try to make sense of it. You start doing mental gymnastics. Maybe the text is hidden. Maybe it didn’t load properly. Maybe you’re overlooking something obvious. And then reality just says, no, it’s not there.
Once the correct document arrived, it was business as usual again, which in proofreading terms means catching the usual mix of small errors, inconsistencies, and the occasional sentence that’s had a long day and needs a nap.
So before your next document makes its way to a client, a colleague, or someone who will absolutely notice the missing introduction, just ask yourself one question: has this actually been checked, or has it merely been formatted nicely?
If it’s the second one, that’s where I come in.
083 657 3377 | kim@a-proofed.co.za
www.a-proofed.co.za
