What the ruling clarifies about sanctions, jurisdiction, and how your response can directly influence the outcome.
If you are a law firm in South Africa, this judgment directly affects you.
And not in a theoretical way but in a real, financial, enforcement-risk way.
The High Court in Len Dekker Attorneys Inc v Financial Intelligence Centre (2026) has clarified when the FIC can sanction you and more importantly, how your remediation impacts sanctions and penalties.
Background: What happened in this case?
The matter arose from an inspection of a law firm by the Financial Intelligence Centre (FIC), which identified multiple areas of non-compliance with FICA.
These included failures relating to core obligations such as:
- having a compliant Risk Management and Compliance Programme (RMCP)
- conducting proper client due diligence
- identifying beneficial ownership
Importantly, the period of non-compliance spanned several years, including a time when the FIC was not yet the supervisory body for legal practitioners, and oversight fell under the Law Society (now the LPC).
Following the inspection, the FIC imposed administrative sanctions.
The firm appealed, arguing that:
- the FIC could not impose sanctions for periods before it became the supervisory authority, and
- relevant remedial steps taken by the firm had not been properly considered
The matter ultimately came before the High Court, which was asked to determine the scope of the FIC’s sanctioning powers and how those powers must be exercised.
Why this matters (especially for small firms)
Let’s be honest about the reality:
- Over 80% of law firms in South Africa are small firms
- Many are sole practitioners
- You are balancing: Clients, Court, Operations, and Compliance.
And FICA often becomes something you only fully confront when an inspection happens.
With the recent ramp-up in inspections, we’ve seen this firsthand. Between November 2025 and March 2026, we assisted over a dozen firms with inspection preparation and remediation, and the same challenges continue to surface.
This judgment recognises that context more than people realise.
1. The FIC Cannot Go Back Before 19 December 2022
The Court made it clear: The FIC cannot impose sanctions for periods when it was not your supervisor.
For legal practitioners, that means:
- No sanctioning for pre-19 Dec 2022 (Law Society and LPC era)
- Sanctions only apply from when FIC became the supervisory authority
This is a massive shift in enforcement scope because previously, firms were being assessed across years of historical non-compliance.
Now: That exposure is legally limited.
2. Remediation Directly Impacts Your Sanction (This Is Critical)
This is where the judgment becomes practically powerful.
The Court confirmed that: Remedial steps are a statutory factor that must be considered when determining an appropriate administrative sanction.
This is grounded in section 45C(2) of the FIC Act, which the Court expressly refers to:
“When determining an appropriate administrative sanction, the Centre or the supervisory body must consider… …any remedial steps taken by the institution or person to prevent a recurrence of the non-compliance.” (Len Dekker Attorneys Inc v FIC, High Court, Gauteng Division, Pretoria, 25 March 2026, p.16, para [48])
Remediation is not irrelevant. It is a statutory factor that must be considered in determining the appropriate sanction.
Importantly, the Court also criticised the Appeal Board for failing to properly apply the sanctioning provision (section 45C), reinforcing that these statutory factors must be correctly considered in determining sanctions (see p.15–16, paras [44]–[48]).
3. Timing matters more than perfection
Many firms delay remediation because they want to fix everything properly first.
But under the FIC Act, sanctions are influenced by both the duration of non-compliance and what was done to address it.
This means waiting can actually increase your exposure.
A firm that starts remediation early, even if incomplete, is in a stronger position than one that delays for a “perfect” solution.
Because ultimately, the question is not just whether you were non-compliant, but how quickly you acted once you knew.
📌 If you’re unsure where your gaps are or how exposed you might be, we’re currently offering a complimentary FICA diagnostic audit.
We will:
- Identify your key compliance gaps
- Map them against FIC expectations based on our remediation experience
- Outline a practical remediation plan
What law firms should do now (this is not a signal to relax)
The 12 FIC Act Obligations for Law Firms and other Accountable Institutions (Source: fic.gov.za/compliance)
This judgment is not a signal for law firms to relax — it’s a signal to act more strategically.
Because while the Court has clarified how enforcement must be applied, enforcement itself is already escalating.
The standard of compliance has not been lowered. But there is now greater clarity on how sanctions will be determined.
That creates a real opportunity, especially for small and sole practitioner firms, to take control of their position before enforcement intensifies further.
In practical terms, this means:
- Understanding where your gaps are,
- Prioritising high-risk areas (RMCP, risk assessment, TFS screening),
- Starting remediation early.
Firms that move now, even if not perfect, are in a far stronger position than those who delay.
Because under this framework, your response and effort directly influence the sanction outcome.
Final thought
For small firms, this matters.
Not because the standard has changed but because the context is now better recognised.
Many firms were not ignoring compliance. They were navigating limited capacity within a complex regulatory environment.
This judgment brings that reality into how enforcement should be applied.
Professional guidance: Get a Complimentary FICA Compliance Audit And Remediation Plan
If you’re unsure about your compliance position, we can help.
We offer a complimentary FICA compliance audit and remediation plan, giving you clear visibility on your gaps and a practical path to address them before the FIC comes knocking: comply@ficafriendly.com
We’ve worked with close to 50 law firms (mostly small practices) and happy to share practical guidance on how to approach remediation.
Download the full judgement here.
If you’re currently dealing with an inspection feel free to reach out: comply@ficafriendly.com / 0728815095.
FICA FRIENDLY (PTY) LTD | Fica Compliance Specialist | Making Quality Fica Compliance Accessible | 40+ Law Firms Served! compy@ficafriendly.com | 0728815095.