FICA stands for the Financial Intelligence Centre Act, and it came into effect on the 1st of July 2003. This initiative was introduced to battle financial crime and minimizes tax evasion, money laundering, and terrorist financing activities.
[ht_message mstyle=”success” title=”” show_icon=”” id=”” class=”” style=”” ]FICA aims to fight crime in the financial sector by having out personal details stored in the banking or financial institution’s database. FICA is in line with similar legislation in other countries to minimize unlawful financial activities.[/ht_message]
Money Laundering is an act of concealing the source of illegally received money and has been the biggest problems around the world, but FICA is here to ensure such criminal activities are averted.
The Financial Intelligence Centre Act, 38 of 2001 (FICA)
Depending on the financial institution, the most important document among other documents is your green barcoded South African Identity Document or your Smart Identity Card. All financial institutions are to comply with the FICA legislation, as their regulations and its guidance notes are continuously under review.
Therefore, every now and then, you might be contacted by your financial service provider to update your details as per FICA request.
It is often best to keep your details updated with your FSP (Financial Service Provider), and so when they need any more FICA information or documentation, they can be able to reach you.
When you are contacted, and fail to fail to avail yourself to update your FICA information, your accounts with your FSP will be frozen until such a time that your FICA information has been updated.
Personal and Business Accounts are treated differently. FICA documentation requirements are different for personal and business accounts, and it will also depend on how your business has been registered.
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- You need an ID document or Smart ID Card.
- Identity Number
- Proof of Address
- A face to face interaction
If any further information or documentation is needed your FSP will contact you via email or telephonically. You can’t ask anyone to do it for you; you have to be there in person as verification of your identity.