Employees who are involved in the business of the accountable institution who interact with clients are required to have intensive training on the provisions of the FIC Act.
Employees of the accountable institution should not be allowed to deal with clients if they have not received training on the FIC Act and internal rules of the accountable institution. Actually, the FICA Training should form part of the induction program of the applicable accountable institution.
Even though knowledge assessments are not required by the FIC Act, the training program should include assessments of employees (possibly on different levels, depending on their position within the accountable institution) to ascertain their level of knowledge in relation to the FIC Act obligations
Employees may be assessed, interviewed or be required to write tests in order to evaluate the level of knowledge and understanding on the compliance obligations imposed by the provisions of the FIC Act. However, each accountable institution must determine in accordance with their risk appetite and risk management system whether knowledge assessments should form part of its training programme.
Accountable institution should keep an attendance register to ensure that a record of training attended is kept. Although the use of an attendance register is not required in terms of the FIC Act, it is an acceptable business practice and can serve as proof that the training requirement has been met. The use of an attendance register can also assist the accountable institution to track the number of employees that have been trained.
The frequency of training that should be conducted
Training should be ongoing, and the Centre recommends that employees should also receive refresher training to ensure that employees are kept up to date of any new developments in terms of the FIC Act. The manner, content and frequency of the training is not prescribed, and each accountable institution must determine in accordance with their internal rules and risk management system how and when the refresher training should be provided.
Any changes to internal policy, changes in legislation or any other related matters must be included in the training programme and communicated to all employees.
Records must be kept of any refresher training conducted by the accountable institution.
Who responsible to train employees
A compliance officer (MLCO) is responsible for ensuring that training takes place.
Failure to train employees
Failure to provide training. — An accountable institution that fails to provide training to its employees is non-compliant and is subject to an administrative sanction.
Penalty for not training employees
An accountable institution that fails to comply with the provisions of section 43 of the FIC Act is guilty of an offence and can be liable to imprisonment for a period not exceeding five years or to a fine not exceeding R10 Million; in terms of section 62 read with section 68 of the FIC Act.