Sector guides

Car Dealers and the R100 000 Rule

Motor vehicles, jewellery, art, Krugerrands — if an item changes hands for R100 000 or more, the dealer is inside the FICA regime. Most found out late.

Published Last reviewed 6 min read

Legal position stated as at 11 June 2026

Written by

Martin Kotze

Attorney, Conveyancer & Notary Public

Quick answer

Since 19 December 2022, a dealer who receives R100 000 or more in respect of an item is a high-value goods dealer — an accountable institution under Schedule 1 item 20 of the FIC Act. The FIC’s guidance (PCC 58) confirms the threshold counts any payment form (cash, EFT, card, crypto) in a single operation or linked operations. That is how motor vehicle dealers, jewellers, art dealers and Krugerrand dealers acquired the full duty stack: FIC registration on goAML, an RMCP, customer due diligence on qualifying sales, cash threshold reports at R49 999.99, and suspicious transaction reports.

The R100 000 rule

Schedule 1 item 20 (as substituted by GN 2800) lists “a person who carries on the business of dealing in high-value goods” where any transaction reaches R100 000 — replacing the old, lighter Schedule 3 “reporting institution” status that motor and Krugerrand dealers previously held. The change took effect on 19 December 2022; the FIC has campaigned at the motor trade specifically since (its October 2025 outreach to vehicle dealers is explicit about financial-crime risk in the sector), and unregistered dealers are an enforcement target.

Any payment form — not just cash

The most common misreading in the sector is that the rule is about cash. PCC 58 closes it: the R100 000 threshold counts any form of payment — cash, EFT, card or crypto — in a single operation or linked operations. A financed vehicle sale of R350 000 with no banknote in sight still makes the dealership an accountable institution. Cash does matter separately: physical currency of R49 999.99 or more in a transaction triggers a cash threshold report to the FIC.

Buying a car? Why the dealer FICAs you

If a dealership asks for your ID and source-of-funds information on a R100 000+ purchase, it is discharging the same statutory duties as a bank: identity established and verified per its RMCP, and the transaction’s funding understood. What it may ask for follows the same law-vs-RMCP split as everywhere else in this hub — the documents guide applies to car dealers exactly as it does to banks.

The dealership’s duty stack

A qualifying dealer carries the full accountable-institution stack: registration with the FIC on goAML (within 90 days of qualifying), a documented and implemented RMCP, customer due diligence on qualifying transactions, cash threshold and suspicious transaction reporting, targeted financial sanctions screening, risk and compliance returns and staff training — the institution guide walks through each duty, and the enforcement tracker shows what non-compliance has cost others.

Frequently asked questions

  • Per PCC 58: a single operation or linked operations totalling R100 000 or more triggers accountable-institution status — splitting an invoice into instalments does not avoid the threshold.

  • Yes. PCC 58 confirms the threshold counts any payment form — cash, EFT, card, even crypto. (Cash matters separately for the R49 999.99 cash threshold reports.) The FIC’s own FAQ answers the no-cash question the same way: registration still applies.

  • Schedule 3 (reporting institutions) was abolished in the December 2022 rewrite. Dealers meeting the R100 000 threshold are now full accountable institutions under Schedule 1 item 20, with the complete duty stack.

Why you can trust this: Martin Kotze has been an admitted Attorney of the High Court of South Africa, registered Conveyancer, and Notary Public since 2014, practising from Pretoria. The firm is regulated by the Legal Practice Council under firm registration F17333.

This guide is general information, not legal advice for your specific matter.

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