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Update: Compliance regulations and legal requirements

Home Business Management Safety Update: Compliance regulations and legal requirements

ENSURING compliance with various regulations is critical for businesses to operate legally, ethically and efficiently. The National Occupational Safety Association (NOSA) explains different types of compliance regulations and the importance of staying updated with the latest standards.

Financial compliance regulations

Financial compliance regulations maintain the integrity and stability of the financial system. These regulations protect consumers, ensure fair practices and prevent financial crimes such as fraud and money laundering.

Key aspects of financial compliance regulations include:

  • Ensuring financial institutions operate transparently and fairly.
  • Mandating financial institutions to report their activities to regulatory bodies ensuring transparency.
  • Safeguarding consumers against unfair practices and financial misconduct.

ESG compliance

Environmental, social and governance (ESG) compliance refers to a company’s commitment to operating sustainably and ethically. ESG factors are increasingly important to investors, customers and regulatory bodies.

Benefits of ESG compliance include:

  • Reducing environmental impact through sustainable practices.
  • Ensuring fair labour practices, community engagement and diversity.
  • Maintaining transparency, accountability and ethical decision-making.

South African companies are encouraged to follow global ESG standards to attract international investors and maintain competitiveness. NOSA Auditing and Inspection Services has developed a self-evaluation list of selected requirements to assist businesses with ESG compliance.

Crypto compliance

In 2022, South Africa’s financial conduct regulator, the Financial Sector Conduct Authority (FSCA), declared crypto assets to be financial products and said they needed to be regulated to protect financial customers from risks and prevent money laundering and terrorism financing.

On 22 April 2024, the FSCA confirmed that it had approved a total of 75 institutions to be licensed as Crypto Asset Service Providers (CASPs) under the Financial Advisory and Intermediary Services Act.

As of 30 June 2024, the FSCA approved a total of 63 licence applications, bringing the number of licensed CASPs in South Africa to 138. The SA Reserve Bank ensures legal standards for crypto assets and does not currently recognise crypto assets as currency.
Anti-money laundering (AML) and Counter financing of terrorism (CFT) AML / CFT regulations are designed to detect and prevent money laundering and the financing of terrorism. These regulations require financial institutions to monitor, detect and report suspicious activities.

Key requirements are:

  • Criminalising terrorist financing;
  • Supporting investigations using financial intelligence;
  • Identifying higher-risk businesses and professions.

The Financial Action Task Force – which sets international standards to combat money laundering, terrorist financing and other financial crimes – greylisted South Africa in February 2023 and adopted an Action Plan with 22 items linked to strategic deficiencies in the country’s AML / CFT regime.

South Africa aims to address all 22 items by deadlines ranging from January 2024 to January 2025, with the goal of exiting the FATF greylist by June 2025. To date, 14 of the 22 items still need to be addressed.

Legal compliance courses

Legal compliance courses educate individuals and businesses on how to adhere to legal requirements and regulations in various sectors.

These courses matter because they:

  • Help businesses stay informed about frequently changing laws and regulations;
  • Prevent legal issues and fines by understanding legal requirements;
  • Enhance overall business operations and trust through knowledge of compliance.

Regulatory compliance courses

These courses provide comprehensive training on industry-specific regulations and general compliance principles. The company also offers Consider SafetyCloud’s 100+ safety-related training courses, skills programmes, qualifications and work-based learning.

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