THE FINANCIAL INTELLIGENCE CENTRE ACT ("Fica")

Internationally, governments have agreed to fight organised crime and terrorism. This fight includes seizing the proceeds of crime and making money laundering a criminal offence.

South Africa has now adopted money laundering laws to help it comply with its international obligations to fight organised crime and terrorism. One of these laws is Fica which contains money laundering controls.

Fica obliges banks and other institutions and professionals, such as estate agents, brokers, attorneys and insurance companies to carry out these controls. These institutions and professionals have to implement measures which enable them to know their customers and clients.

Consequently each person will be required to prove his identity and reseidential address to the institution or professional involved with the particular transaction.

Individuals will need to supply an identity document, passport or card-format driver's licence. It will be necessary to verify the residential address by viewing and retaining a copy of any one of the following documents which bears the client's name and residential (not postal) address:

• Municipal rates and taxes account (less than 3 months old)
• Telkom or other utility account (less than 3 months old)
• Bank, credit card or mortgage statement (less than 3 months old)
• Payslip or salary advice (less than 3 months old)
• Rental or lease agreement
• SARS tax return or an IRP5 (less than 12 months old)
• A recent life insurance policy or member statement from another company
• A recent short term insurance document showing the risk address
• TV or motor vehicle licence ((less than 12 months old)

Companies and Close Corporations will need to supply copies of the following:

Company:

• Certificate of Incorporation (CM1) and
• Notice of Registered Office and Postal Address (CM22)
• Proof of trade name and business (not postal) address

Close Corporation:

• Founding Statement and Certificate of Incorporation (CK1) and
• Amended Founding Statement (CK2) (if applicable)
• Proof of trade name and business (not postal) address

It is also necessary to verify the identity of each of the following:

• The directors and manager of the company in South Africa
• The person authorised to do business on behalf of the company or close corporation together with proof of authority to act.
• Anyone holding more than 25% of the voting rights
• All members of a close corporation

This verification will require the same documents as required by individuals.

Trusts will need to supply the trust deed or founding document and the authorisation by the Master of the High Court for each trustee to act in that capacity.

The identity of each trustee, each named beneficiary, the founder and any persons authorised to do business on behalf of the trust will need to be verified. This will require the same documents as required by individuals.

The above information is supplied by:

W H Lindemann
LINDEMANNS
13 Bright Street,
Somerset West,7130
Tel: +27 (0)21-8511005
email: lindeman@mweb.co.za

who is available to answer any queries