The Financial Intelligence Centre Act (FICA) was established to identify and prevent the proceeds from unlawful activities passing through South African systems. The purpose of the Act is to monitor and mitigate activities related to money laundering, terrorist funding and tax evasion. Accountable institutions have a regulatory duty to have sufficient and proper systems in place to ensure FICA verification is completed. Such institutions must have internal rules, controls and processes in place to ensure that verification is properly documented.
Financial services providers (FSPs) must verify the essential information of their clients as prescribed by the Act. The verification process places considerable responsibility on FSPs to know their clients in terms of the Know-Your-Client (KYC) principles. The process is important as proper KYC verification methods are the right step to eliminate money laundering and terrorist financing through our credible banking and financial systems.
We can help ensure your business has the proper FICA verification systems in place. Contact us if you need assistance when it comes to monitoring the FICA status of your business and supporting independent financial advisors.