In today’s regulatory environment, compliance with legal and regulatory requirements is not optional; it’s a business necessity. Whether you’re operating in finance, mining, logistics, or professional services, adhering to national and sector-specific regulations is critical to operating legally, ethically, and efficiently.
This guide outlines the most important compliance areas South African businesses need to manage. and how training, auditing, and continual awareness can help reduce risk, avoid penalties, and strengthen credibility.
Why Is Compliance with Legal and Regulatory Requirements Important?
Non-compliance can result in:
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- Heavy fines and penalties
- Loss of operating licences or industry accreditation
- Legal liability for directors and officers
- Reputational damage
But proactive compliance offers benefits too:
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Strengthens stakeholder trust
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Improves audit outcomes
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Reduces operational risk
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Enhances market competitiveness
Key Compliance Areas for South African Businesses
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 includes:
- 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 have developed a self-evaluation list of selected requirements to assist businesses with ESG compliance.
Crypto compliance
In 2022, SA’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, 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 SA in February 2023 and adopted an Action Plan with 22 items linked to strategic deficiencies in the country’s AML / CFT regime.
SA 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.
How Can Your Business Stay Compliant?
1. Implement a Compliance Management System
- Identify all relevant laws and regulations by industry
- Document internal policies and procedures
- Assign clear compliance responsibilities
- Schedule regular reviews and audits
2. Invest in Compliance Training
Educating staff is critical. Online and in-person compliance training programmes ensure your workforce:
- Understands sector-specific legal obligations
- Applies compliance principles in day-to-day decisions
- Keeps pace with regulation updates
3. Conduct Internal Audits
Regular internal compliance audits:
- Flag weaknesses before external inspections
- Prepare you for regulator site visits
- Demonstrate commitment to accountability
Why Choose SafetyCloud for Compliance Training?
With over 100 accredited occupational health, safety, and environmental training courses, SafetyCloud supports thousands of South African businesses in meeting their legal and regulatory requirements.
Our training covers:
- OHS Act and legal liability
- ESG compliance frameworks
- Risk assessment and HIRA
- Incident investigation
- Financial and AML awareness
- ISO 45001 systems implementation
Courses are available online, on-site, or hybrid, with built-in tracking and digital certification.
Get Started: Strengthen Your Compliance Today
Protect your business. Build trust. Avoid penalties. SafetyCloud can help you meet your compliance with legal and regulatory requirements through tailored training, consulting, and auditing services.
- View our online training catalogue
- Or contact us directly to request a compliance solution tailored to your sector.