Legislative compliance for high-value goods dealers in the agricultural sector
Agribusinesses and farmers dealing in high-value goods (HVGs) of R100 000.00 or more are now legally required to comply with the Financial Intelligence Centre Act (FICA). Failure to do so can result in stiff fines and penalties if uncovered during inspections. Compliance is therefore not optional—it is a legal obligation that demands urgent attention.
On 19 December 2022, significant amendments to FICA came into effect in South Africa, strengthening measures aimed at anti-money laundering (AML), counter-terrorist financing (CTF), and counter-proliferation financing (CPF). As a result, any business or individual classified as a high-value goods dealer (HVGD) in the farming and agricultural sector must ensure full compliance with these requirements without delay.
Act now!
Individuals in the agricultural sector and agricultural businesses in South Africa should urgently pay attention to this matter to ensure they comply with the new FICA requirements.
A Free FICA Assessment will help you to determine whether your agricultural business must also comply with these requirements.
The assessment is quick, easy and completely confidential.
👉 Click here to complete the free FICA Assessment.
This assessment will help you uncover any FICA red flags, highlight areas of concern and offer clarity on your current business’s FICA status. At the end you can opt to receive a free expert opinion with no obligation.
Your peace of mind starts with the right information.
Status regarding FICA non-compliance
In 2023, the FIC required all HVGDs to complete and submit a FIC Risk and Compliance Return Questionnaire by 31 July 2023. Institutions that failed to submit their Risk and Compliance Reports (RCRs) are already facing targeted inspections and sanctions. During March 2025, all HVGDs were also required to submit their latest “Risk Management and Compliance Programmes” (RMCPs) to the Financial Intelligence Centre (FIC). The FIC has started imposing fines, which may escalate further if high-value goods businesses do not meet the regulatory requirements.
The grace period for compliance has come and gone, and the FIC is now constantly assessing institutions in the agricultural sector for compliance, the result of which may be administrative sanctions, including substantial penalties, for non-compliance.
Impact on the agricultural sector
The agricultural sector, with its ongoing high-value goods (HVG) transactions of
R100 000.00 or more, is directly affected. Examples of entities that are also HVGDs in the agricultural sector are dealers in animals – auction trading of livestock (including game breeders), exotic animals and exotic plants; auctioneers in buying and selling HVGs on behalf of the seller to the buyer; trading platforms in the buying or the selling on behalf of the owners of agricultural automotive or any other agricultural equipment of R100 000.00 or more; the buying or selling of aircraft, helicopters, tractors, drones or other equipment aimed at the agricultural sector; selling or buying crops (as “unit”), all as part of normal business dealings.
An Accountable Institution (AI) is any person (or entity) mentioned in Schedule 1 Item 20 of FICA. When the value of the business transaction in the normal course of business is R100 000 or more, the institution becomes an “accountable institution” (AI) in terms of FICA. The definition in the Schedule is the following:
“A person who carries on the business of dealing in high-value goods in respect of any transaction where such a business receives payment in any form to the value of R100 000,00 or more, whether the payment is made in a single operation or in more than one operation that appears to be linked, where “high-value goods” means any item that is valued in that business at R100 000,00 or more”.
What are the requirements for an Accountable Institution?
Accountable institutions are legally obliged to do the following:
- register with the FIC,
- appoint a FICA compliance officer
- implement an RMCP
- determine and apply robust client identification and verification processes (client due diligence - CDD)
- report certain transactions and
- keep all records for a minimum of 5 years for any inspection purposes by the FIC.
The importance of FICA Compliance
Non-compliance with FICA requirements poses serious risks, including financial penalties and reputational risks. Furthermore, it undermines South Africa’s efforts to improve its global economic position and be removed from the grey list, as non-compliant institutions may be seen as potential facilitators of money laundering, fraud, terrorism or proliferation financing.
For assistance and to ascertain whether these FICA requirements are applicable to any agriculture related business entities, you are welcome to complete the above mentioned free FICA assessment.
Adv Francois Meintjes, Compliance Officer of Moonstone Compliance and member of the Agri X Panel of Advisors. For more information on Agri X, visit:
🌐 www.agrixgroup.com
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