Financial Intelligence Centre Identification and Verification Requirements

Introduction

The Financial Intelligence Centre Act No.38 of 2001 (FICA), requires accountable institutions (which includes Investment Managers) to establish and verify the identity of clients prior to transacting with them, in order to combat or eliminate money laundering activities. The term "money laundering" describes the various methods employed by criminals to hide and disguise the proceeds from their crimes. It is important to realise that money laundering is not only related to cash transactions but includes transactions such as transmissions, loans, investments, trading in securities, trade finance services, commodities etc. Money laundering also encompasses tax evasion and exchange control breaches.

FICA - Identification and verification requirements prior to transacting

Section 21(1) of FICA prescribes that accountable institutions may not establish a business relationship or conduct a single transaction with a new client unless they have established and verified the identity of the client.

Identification and verification requirements where another accountable institution is involved

Clause 4 of the Notice on Exemptions exempts accountable institutions from the identification and verification requirements, if such identification and verification has been done by another accountable institution (e.g. Brokers). This is subject to the condition that the broker (the secondary accountable institution) confirms in writing, to the satisfaction of the primary accountable institution, that he/she/it has established and verified the identity of the specific client or in terms of his/her/ its internal rules and procedures ordinarily applied in the course of establishing business relationships with clients, he/she/it will have established and verified the client's identity.

Actions to be taken to comply with FICA identification and verification requirements

To ensure that accountable institutions comply with their identification and verification requirements, clients should attach the documents below to completed application forms. However, the following persons are exempted from providing this documentation:

  • A public company whose shares are listed on a recognized securities exchange (e.g. JSE) An approved Pension, Provident or Retirement Annuity Fund (on investment into a collective investment scheme).
  • An approved Life Assurance Fund (on investment into a collective investment scheme)

SA Bullion reserves the right to request the supporting documentation for the above-mentioned exempted persons where it deems necessary. SA Bullion will only place investments once all the supporting documentation listed below has been supplied.

1. NATURAL PERSONS

1.1 SA Citizen/Resident

  • 1.1.1 ID document containing a photo, full names, date of birth & ID number (A passport/driver's license containing the above information will only be accepted with a written reason for the unavailability of the ID document).
  • 1.1.2 A document(s) less than 3 months old containing residential address (i.e.) utility bill, account of a landline telephone, bank statement, municipal rates, tax invoice, lease agreement, mortgage statement, insurance policy, statement in terms of CISCA, correspondence from a body corporate or share-block association, payslip, television licence, and motor vehicle licence.

1.2 Foreign Nationals

  • 1.2.1 A passport containing a photo, full names, date of birth & ID number.

1.3 Legal Incapacity / 3rd party representing another individual

  • 1.3.1 Document set out above i.r.o both parties (1.1.1 or 1.2.1).
  • 1.3.2 Proof of authority to act (i.e.) power of attorney, mandate, resolution, court order.

2. LEGAL PERSONS

2.1 SA Companies

  • 2.1.1 Certificate of Incorporation (CM1) and Notice of Registered Office and Postal Address (CM22) containing Registrar's stamp and signed by the Company Secretary.
  • 2.1.2 A document(s) less than 3 months old containing trade name and business address (i.e.) utility bill, account of landline telephone, bank statement, municipality rates, tax invoice, and lease agreement.
  • 2.1.3 ID document/passport as set out in 1.1.1 and 1.2.1 respectively, i.r.o the manager, all authorised representatives, all individuals holding 25% or more of the voting rights at a general meeting.
  • 2.1.4 Proof of authority to act for company (i.e.) Director's resolution.
  • 2.1.5 Applicable documents referred to in 2.1.1 / 2.1.2 or 2.2.1 / 2.2.2 or 2.3.1 / 2.3.2 or 2.4.1, 2.5.1 or 2.6.1 i.r.o institutions holding 25% or more of the voting rights at a general meeting.

2.2 SA Close Corporations

  • 2.2.1 Founding Statement and Certificate of Incorporation (CK1) and Amended Founding Statement (CK2) if applicable, containing Registrar's stamp and signed by an authorised representative/employee.
  • 2.2.2 A document(s) less than 3 months old containing trade name and business address (i.e.) utility bill, Account of landline phone, bank statement or municipality rates, tax invoice and lease agreement.
  • 2.2.3 ID document/passport as set out in 1.1.1 and 1.2.1 respectively i.r.o each member and all authorised representatives.
  • 2.2.4 Proof of authority to act for close corporation (i.e.) member's resolution.

2.3 Foreign Companies

  • 2.3.1 Official document from foreign regulator witnessing incorporation, bearing the name, number and address.
  • 2.3.2 A document(s) less than 3 months old containing SA and foreign trade names and business addresses (i.e.) utility bill, Account of landline phone, bank statement, municipality rates, tax invoice and lease agreement.
  • 2.3.3 ID document/passport as set out in 1.1.1 and 1.2.1 respectively, i.r.o the SA manager, all authorised representatives, all individuals holding 25% or more of the voting rights at a general meeting.
  • 2.3.4 Proof of authority to act for company (i.e.) Director's resolution.
  • 2.3.5 Applicable documents referred to in 2.1.1 / 2.1.2 or 2.2.1 / 2.2.2 or 2.3.1 / 2.3.2 or 2.4.1, 2.5.1 or 2.6.1 i.r.o institutions holding 25% or more of the voting rights at a general meeting.

2.4 Other Legal Persons (i.e. club, association, body corporate, retirement fund)

  • 2.4.1 The constitution or other founding document in terms of which legal person is created.
  • 2.4.2 ID document/passport as set out in 2.1.1 and 2.2.1 respectively i.r.o all authorised representatives.
  • 2.4.3 Proof of authority to act for legal person.

2.5 Partnerships

  • 2.5.1 Partnership agreement.
  • 2.5.2 ID document/passport as set out in 1.1.1 and 1.2.1 respectively, i.r.o all authorised representatives.
  • 2.5.3 Proof of authority to act for partnership.
  • 2.5.4 Applicable documents referred to in 2.1.1 / 2.1.2 or 2.2.1 / 2.2.2 or 2.3.1 / 2.3.2 or 2.4.1 or 2.6.1 i.r.o any institutional partners or an institution exercising executive control.

2.6 Trusts

  • 2.6.1 The main deed or other founding document (i.e. a will)
  • 2.6.2 Letters of authority from Master (SA trust) or foreign regulator (foreign trusts) to trustees
  • 2.6.3 ID document/ passport as set out in 1.1.1 and 1.2.1 respectively i.r.o an individual founder of the trust, each individual trustee, each individual beneficiary, all authorised representatives.
  • 2.6.4 A death certificate or certificate of deregistration where founder died or ceased to exist.
  • 2.6.5 Applicable documents referred to in 2.1.1 / 2.1.2 or 2.2.1 / 2.2.2 or 2.3.1 / 2.3.2 or 2.4.1 or 2.6.1 i.r.o any institutional beneficiaries, any institutional trustees or institutional founder of the trust.