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Recording cash transactions over R25k is now a thing of the past for banks

The treasury announced on Friday that the maximum amount of cash transactions before obligatory reporting requirements take effect will double as of November 14.

According to Business Insider SA, various institutions are obligated to report specific transactions to the Financial Intelligence Centre (FIC), even if they don’t seem suspicious, in order to fight money laundering and the financing of terrorist activity.

Any cash transaction worth more than R24,999 has been considered since 2010. That applied to both situations in which a single exchange of money occurred and those in which “small volumes are linked to be considered fractions of one transaction,” in the opinion of a reporting organization.

Executives have long claimed that banks tended to over-report, choosing to overwhelm the FIC with reports if necessary, because they risk severe fines and reputational harm if they disregard such regulations.

The stipulated sum for cash transactions will increase to R49,999.99 when the new regulations are put into effect in the middle of November, the treasury announced on Friday, thanks to the financial minister Enoch Godongwana.

Then after, a report to the FIC must include information like the time and place as well as a wealth of details about the involved parties, including their gender and line of work, the origin of the funds, and information about their employer, in addition to standard identifiers like their Identification number and taxation number.

As soon as possible, but no later than three days after realizing a sufficient amount of money has been transferred, institutions are obliged to provide that information.

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