58 Monitoring of reporting entities

(1) Every supervisory authority shall monitor reporting entities under its control on risk-sensitive basis and take necessary measures for the purpose of ensuring compliance by those reporting entities with the provisions of this Act.
(2) Every supervisory authority shall develop and implement a risk-based approach to supervision, taking into consideration—
(a) the money laundering and terrorist financing risk profiles and risk assessments prepared by reporting institutions and take the result of the review into consideration;
(b) the adequacy and implementation of reporting institutions policies, internal controls and procedures, taking into account the money laundering and terrorist financing risk profile and size of the institution; and
(c) the application of consolidated supervision to financial institutions for the purposes of anti-money laundering and countering the financing of terrorism.
(Amended by Act 7 of 2021)
(3) Where the supervisory authority has to examine a reporting entity, the supervisory authority may appoint an examiner to examine the reporting entity under the provisions of this Act in such manner as may be prescribed.
(4) An officer who has been authorised under subsection (3), to examine a reporting entity, may, in undertaking such examination, perform the functions assigned to him or her under this Act.
(5) Every supervisory authority and any person authorised under subsection (3) or (4), to examine a reporting entity shall be subject to the confidentiality restrictions contained in this Act.
(6) Every reporting entity or any other person to whom this Act applies, shall without delay, provide assistance to an examiner in the examination of the reporting entity under subsection (3) or (4), as the case may be.
(7) Subject to subsection (8), an officer appointed as examiner under subsection (3) or (4) shall not disclose to any person, who is not in the service of the FIU or supervisory authority, any information obtained in the performance of his or her functions under subsection (3) or (4).
(8) An officer appointed as examiner under subsection (3) or (4) may disclose information—

(a) for the purpose of enforcing compliance with the provisions of this Act or any order, determination or directive made under the provisions of this Act;
(b) for the purpose of legal proceedings;
(c) when required to do so by a court; or
(d) if the supervisory authority is satisfied that it is in the public interest.
(9) Every supervisory authority and every other relevant authority shall when called upon to do so by the Financial Action Task Force or on the Committee’s independent determination specify the countermeasures that shall apply to a high-risk country as may be necessary and proportionate to the risk, business relationship and transaction. (Substituted by Act 62 of 2021)
(10) The countermeasures referred to in subsection (9) may be prescribed by regulations or by other enforceable means as may be deemed necessary by a supervisory authority or other relevant authority. (Inserted by Act 62 of 2021)
(11) Every supervisory authority shall take measures to ensure that reporting entities are advised of concerns about weaknesses in the AMLCFT systems of other countries. (Inserted by Act 62 of 2021)
(12) For the purposes of subsection (9), “relevant authority” refers to every public authority with designated responsibilities for combating money laundering or terrorist financing, including the FIU, authorities that have the function of investigating or prosecuting money laundering, associated predicate offences and terrorist financing, and seizing or freezing and confiscating criminal assets, authorities receiving reports on cross-border transportation of currency and bearer negotiable instruments and authorities that have Anti-Money Laundering and Countering the Financing of Terrorism supervisory or monitoring responsibilities aimed at ensuring compliance by financial institutions and Designated NonFinancial Businesses or Professions with Anti-Money Laundering and Countering Financing of Terrorism requirements.
(Inserted by Act 62 of 2021)