Cash splash for luxury cars a Fica no-no

Car dealers who are paid large cash sums for luxury vehicles are now forced to report this to authorities.

As of late last year, the new Financial Intelligence Centre Act (Fica) implemented restrictions which make dealerships accountable institutions.

Dealerships must report any hint of suspicion in a transaction, as many people purchase cars with money linked to cash laundering schemes, illegal transfer of money, and numerous illicit schemes.

A credit-based transaction verifies identification, minimising suspicious activities and allowing for safer business transactions.

Fica has put more responsibilities in place for dealerships – and this applies to all businesses transacting in high-value goods.

Fica has provided an 18-month grace period for dealerships, however not abiding by the new policies will lead to legal and financial penalties.

Dealerships must use platform systems or automatic integrated systems to proceed with business, as this will accelerate financial clearance for people purchasing on credit, reducing fraud and simplifying reporting.

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