Shedding light on the road ahead for motor vehicle dealers

Motor vehicle dealers (MVD) are currently classified as reporting institutions under Schedule 3 of the Financial Intelligence Centre Act (FIC Act). As reporting institutions, they are obliged to register with and file certain regulatory reports with the Financial Intelligence Centre (FIC). The FIC is proposing to change MVDs from being reporting institutions to accountable institutions.

Under the FIC Act, accountable institutions have more compliance obligations as compared to reporting institutions. It is possible that MVDs may be placed under a new category, proposed as ‘high value goods dealers’, of accountable institutions. The current proposal is that high value goods dealers will include all entities that engage in business where the value of goods and or services exceeds R100,000.