FICA reality check: 2026 brings reckoning for SA’s high-value goods dealers

As South Africa prepares for a critical regulatory assessment in 2026, high-value goods dealers (HVGDs) are facing unprecedented scrutiny from the Financial Intelligence Centre (FIC).

The year 2025 marked a noticeable escalation in enforcement, with heavy penalties imposed on non-financial businesses that failed to comply with enhanced regulatory demands, highlighting a pivotal shift in the operational landscape for these luxury dealers.

HVGDs, defined narrowly as entities selling individual items priced at R100,000 or more, now find themselves operating under the same stringent compliance rules that have long been the burden of the banking sector.

While traditional financial institutions have established robust compliance frameworks, dealerships and luxury retailers are scrambling to catch up amid a mounting tide of regulatory pressures.

The warning shots of 2025

The FIC's intensified focus on the non-financial sector has emerged in response to South Africa being placed on the Financial Action Task Force (FATF) greylist. This designation exposed weaknesses within the financial oversight of businesses beyond banks, particularly highlighting HVGDs, attorneys, and estate agents as critical vulnerability points in the fight against financial crime.

While many motor vehicle dealers have incurred penalties with the vast majority exceeding R100,000, the message is clear: the cost of non-compliance is steep.

Hawken McEwan, Director of Risk and Compliance at nCino KYC, sums up the current dilemma: “The reality is simple: it is much cheaper to be compliant than to pay a potential fine.” With fears of hefty fines looming over lucrative sales, the stakes have never been higher.

2026: The year of consistent enforcement

As regulators gear up for the upcoming FATF review in 2026, the pressure to deliver comprehensive enforcement against financial misconduct will only intensify.

Although South Africa has made strides to exit the greylist, adequate demonstrations of compliance across all sectors will be crucial to maintaining credibility on the global stage.

Common pitfalls have surfaced among HVGDs including insufficient Risk Management and Compliance Programmes (RMCPs) and an alarming trend of financial transactions being overlooked, particularly cash dealings exceeding R49,999.99, which often go unreported.

“For businesses that have been putting off compliance, hoping the issue would fade; the time to act is now,” cautions McEwan. “In 2026, staying afloat means maintaining your compliance, protecting your business, and ensuring you’re still in the race when others have been forced off the track.”

Solving the manual processing bottleneck

A major obstacle hindering many HVGDs is the overwhelming amount of compliance screening required. Every customer must be assessed against sanctioned financial lists, a manual process that can be daunting for dealerships dealing with high customer volumes.

In an increasingly digital world, the integration of automated compliance solutions is changing the game.

Technologies that leverage database verification from Home Affairs and the Companies and Intellectual Property Commission (CIPC) are crucial for maintaining audit trails without necessitating extensive compliance teams.

Innovations in biometric verification are further simplifying compliance processes, allowing for streamlined "document-free FICA" procedures through innovative selfie verification technologies.

“Many businesses don't have big compliance teams and they're not quite sure where to even start,” McEwan notes. “If you can use the Internet, you can use systems like ours.” This transition to automated solutions not only mitigates reputational risks but also elevates an organisation’s standing amidst increasingly discerning banks and partners.

BUSINESS REPORT