FICA: what it is and what documents you need

what are fica documents

July 7, 2014 By RBA Homes

According to the Financial Intelligence Centre’s website. the Financial Intelligence Centre Act, 38 of 2001, otherwise known as FICA was created for this reason:

“To establish and maintain an effective policy and compliance framework and operational capacity to oversee compliance and to provide high quality, timeous financial intelligence for use in the fight against crime, money laundering and terror financing in order for South Africa to protect the integrity and stability of its financial system, develop economically and be a responsible global citizen.”

What that means is FICA aims to combat white-collar crime and money laundering in South Africa by imposing a number of duties on accountable institutions (like banks, attorneys, public accountants, investment advisors, estate agents etc), where they have to verify certain aspects of their clients, record certain details and notify the Financial Intelligence Centre if they suspect a client is involved in some sort of financial underhandedness ie. money laundering.

The Financial Intelligence Centre is there to accumulate the data, analyse it to verify if there is suspicious activity and then hand it over to the relevant authority (like SARS or the SAPS) for further investigation and, ultimately, prosecution.

If the accountable institutions contravene the act or fail in their duties under the act, they can be liable for very stiff penalties. Possibly 15 years imprisonment and fines of up to R10 million.

So this is why the banks and other accountable institutions have to ask for very specific information from you and where you have to provide up-to-date proof of that information in order to legally do business with that institution. They will be in big trouble if they don’t get the right information.

So what do you need to supply in order to be FICA compliant?

If you are an individual applying to an accountable institution, you will need to supply the following:

A certified copy of your green, bar-coded Identity Book (your ID) or a valid passport if you are a foreign national, as proof of who you are.

Then, they also need proof of where you live in the form of an original utility bill that is less than 3 months old, in your name and with your residential address clearly visible on the bill (an Eskom account, rates account, water account or Telkom account is usually good enough for these purposes. If you rent your home, a signed lease agreement is usually acceptable).

They will also require an IRP5 form or another document from SARS to verify your tax number.

If you are not an individual applying, but rather a legal entity like a trust or a PTY (LTD) company, this is what you need to supply:

TRUSTS

1. Trust Deed for SA registered trusts OR similar founding statement for foreign registered trusts.

2. Letter of Authority issued by the Master of the High Court.

3. Green Bar coded ID book for SA citizens or valid passport for foreign nationals who are founders, trustees or determined beneficiaries of the trust and anyone who has the authority to act on the account (e.g. under power of attorney).

4. Proof of authority to act on the account for individuals with this authority.

5. If a beneficiary, trustee or founder is a legal entity, then proof of registration details e.g:

  • for a SA company, CM1/CM3 AND CM22 AND CM27/CM29
  • for a foreign company, the official registration document from the foreign country of Incorporation
  • for a CC, the CK1/CK2 with CK2A
  • for a Partnership, the partnership agreement
  • for another trust, the trust deed and Master’s Letter

    of Authority

  • for another legal entity, the constitution document COMPANIES / CC’S

COMPANIES

1. CM1/CM3 AND CM22 AND CM27/CM29 for companies, or if a foreign company, the foreign document of incorporation.

2. CK1/CK2 AND CK2A for CC’s.

3. One of the following documents which reflects the co/cc name and physical address or erf number and suburb:

  • Utility bill (less than 3 months old)
  • Bank statement (less than 3 months old)
  • Lease or rental agreement (less than 12 months old)
  • Telkom account (less than 3 months old)
  • Official SARS document

4. Green bar coded ID book for SA citizen, or valid passport for foreign national who is the CEO/MD/Head AND anyone having authority to transact, or anyone holding 25% or more of the shareholding (plus a letter form the company’s auditors proving shareholding) and proof of authority to transact for individuals with this authority.

If another legal entity holds 25% of more shareholding, then proof of registration details e.g:

  • for a SA company, CM1.CM3 AND CM22 AND CM27/29
  • for a foreign company, the official registration document from the foreign country of incorporation.
  • for a CC, the CK1/CK2 with CK2A
  • for a Partnership, the partnership agreement
  • for another trust, the trust deed and Master’s Letter of Authority.
  • for another legal entity, the constitution document

PARTNERSHIPS

1. Partnership Agreement, if any.

2. Green bar coded ID book for SA citizen, or valid passport for foreign national who is the CEO/MD/Head AND anyone having authority to transact, or anyone holding 25% or more of the shareholding (plus a letter form the company’s auditors proving shareholding) and proof of authority to transact for individuals with this authority.

3. If partners are legal entities then proof of registration details e.g:

  • for a SA company, CM1.CM3 AND CM22 AND CM27/29
  • for a foreign company, the official registration document from the foreign country of incorporation
  • for a CC, the CK1/CK2 with CK2A
  • for a Partnership, the partnership agreement
  • for another trust, the trust deed and Master’s Letter of Authority

OTHER LEGAL ENTITIES (E.G. CLUBS, ASSOCIATIONS)

1. Constitution or founding document if any.

2. One of the following documents which reflects the entity name and physical address or erf number and suburb:

  • Utility bill (less than 3 months old)
  • Bank Statements (less that 3 months old)
  • Lease or rental agreement (less than 12 months old)
  • Telkom account (less than 3 months old)
  • IRP5 as supplied by employer or an official SARS document

3. Green bar coded ID book for SA citizens, or valid passport for foreign nationals who have authority to transact and proof of authority to act on the account for individuals with this authority.

So when an estate agent or a bank asks for your FICA documents, now you know what they mean and why they have to ask.

Keep in mind that this isn’t about Big Brother watching your every move, it’s about a key preventative measure in the continual fight against crime in South Africa, and every time we comply, it makes our country a bit safer for all of us.

About RBA Homes

RBA Homes has been building homes since 1997 and with over 10 000 houses delivered to clients. We are a leader in the field of property development, with a track record established for our integrity and commitment to providing quality, affordable housing. Through personal interaction we'll ensure that you have the right information and facts at your fingertips.

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Source: rbahomes.co.za

Category: Insurance

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