In South Africa, Financial Services Providers (FSPs) that fall under the definition of “accountable institutions” have specific obligations under the Financial Intelligence Centre Act (FICA), Act 38 of 2001. These obligations are designed to combat money laundering, terrorist financing, and related financial crimes.
FICA creates money laundering control obligations for financial institutions and professionals, such as banks, estate agents, brokers, attorneys and insurance companies.
Customer identification is a crucial element of any effective money laundering control system. We must implement reasonable measures for us to know who our customers are and to prevent criminals from using false or stolen identities to gain access to our services. As such, Monitor Administrators is obliged by FIC to report any suspicious financial requests or transactions to the Financial Intelligence Centre.
Customer Due Diligence (CDD)
– FSPs must identify and verify the identity of clients before establishing a business relationship.
– Enhanced Due Diligence (EDD) is required for high-risk clients, such as politically exposed persons (PEPs).
– Anonymous clients or those unwilling to provide required information must be declined.
For more information please visit: https://www.fic.gov.za
