Masthead offers assistance in monitoring the FICA status of corporate and IFA businesses.
FICA is an abbreviation for the Financial Intelligence Centre Act 38 of 2001 (as amended). The Act was instituted in order to fight financial crime such as money laundering, fraud, tax evasion, terrorist financing activities and identity theft.
FICA is a legal framework which exists to help identify the proceeds of unlawful activities and to monitor and mitigate activities related to money laundering, terrorist funding and tax evasion. Various control measures within FICA aim to ensure the detection and investigation of money laundering.
FICA compliance requires that accountable and reporting institutions, which includes most FSPs, take responsibility to verify the identity of clients prior to transacting or establishing a business relationship with them. In addition, client information should be updated regularly to ensure the accuracy throughout the life cycle of the business relationship.
FSPs therefore need to have internal rules, controls and processes in place that are personalised and applicable to the specific FSP to ensure that the verification process is properly followed and documented. Staff need to be aware of the existence of these rules and well-informed of its content. Masthead provides a template for Internal Rules which FSPs can customise for their business.