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FICA

MONEY LAUNDERING (FICA)

As part of the South African government’s efforts to combat money laundering the Financial Intelligence Centre Act of 2001 (FICA) introduced more rigorous account validation processes and requires all financial institutions including Mercantile Bank Limited, to verify the identity and certain details of all our customers (the so called "Know-Your-Customer" (KYC) checks) by various specific deadlines.

WHAT INFORMATION IS REQUIRED?

The list of documents as set out on the attached IDENTIFICATION CHECKLIST is considered sufficient evidence of identification. The documentation required varies according to the category of customer with whom we are entering into a business relationship or concluding a single transaction.

DEADLINE

Unless we are in possession of all the required information and documentation by 30 September 2005 we will have no other option but to freeze those customers’ account(s) that are not compliant with these requirements for any further transactions. 

IDENTIFICATION CHECKLIST

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KYC CHECKLIST: PRIVATE CLIENTS
(NATURAL PERSONS, INCLUDING SOLE PROPRIETORS)
  
 
 
RSA CITIZENS & RESIDENTS (TEMPORARY RESIDENTS WITH PERMITS)
  

FACE TO FACE IDENTIFICATION  

1.   The original document or certified copy of the following document to verify full names, date of birth and identity number:
  
Identity Document*  

2.  		 
The original document or certified copy of at least one of the following documents, reflecting the name and residential address to verify current residential address:
 
Utility bill (e.g. an electricity bill) (0 – 3 months old)   
Bank statement (other banking institution) (0 – 3 months old)  
Recent lease or rental agreement   
Municipal rates and taxes invoice (0 – 3 months old)  
Mortgage statement (0 – 3 months old)  
Telkom account (cellular phone is not acceptable) (0 – 3 months old)   
Recent SARS return / IRP5  
Recent insurance policy document   
A payslip or salary advice (0 – 3 months old)   
Recent correspondence from a body corporate or share-block association  
Valid television licence documentation (annual)   
Recent motor vehicle licence documentation (annual)   
Recent short-term insurance documentation  

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FOREIGN NATIONALS (NON RSA CITIZENS & NON RSA RESIDENTS, I.E. NATURAL PERSONS NOT STAYING IN SOUTH AFRICA)
  
  

FACE TO FACE IDENTIFICATION

1.   The original document or certified copy of the following document to verify full names, date of birth, nationality and passport number:
  
Passport  

2. 		  
The original document or certified copy of at least one of the following documents, reflecting the name and residential address of the person, to verify current residential address:
 
Utility bill (e.g. an electricity bill) (0 – 3 months old)   
Bank statement (other banking institution) (0 – 3 months old)   
Recent lease or rental agreement  
Municipal rates and taxes invoice (0 – 3 months old)   
Mortgage statement 0 – 3 months old  
Telkom account (cellphone is not acceptable) 0 – 3 months old  
Recent SARS return / IRP5  
Recent insurance policy document   
Recent correspondence from a body corporate or share-block association   
A payslip or salary advice 0 – 3 months old   
Valid television licence documentation (annual)   
Recent motor vehicle licence documentation (annual)   
Recent short-term insurance documentation  

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KYC CHECKLIST: CORPORATE CLIENTS
   

FACE TO FACE IDENTIFICATION 

– SOUTH AFRICAN COMPANIES (PRIVATE)
1.   The original document or certified copy of the following document to verify full names, date of birth and identity number:
  
         
Most recent Certificate of Incorporation (CM1) and Memorandum of Association   
Most recent Notice of the Registered Office and Postal Address (CM22)  

2. 		  
The original document or certified copy of one of the following documents to verify trade name and physical business address of the company:
 
Utility bill (e.g. an electricity bill) (0 – 3 months old)   
Bank statement (other banking institution) (0 – 3 months old)   
Recent lease or rental agreement   
Municipal rates and taxes invoice (0 – 3 months old)   
Telkom account (cellular phone is not acceptable) (0 – 3 months old)   
Recent SARS return / IRP5  

3. 		  
Identification and verification (of identity only) of:
– The manager of the company (means the natural person who is the principal executive officer of the company, by what ever name he or she may be designated and whether or not he or she is a director of that company); 
– All natural persons who purport to be authorised to establish a business relationship or enter into a single transaction on behalf of the company (this will include authorised signatories); and 
– all natural persons holding a 25% or more shareholding in the company who are identified in terms of:
 
Company resolution conferring authority to conclude transaction or establish banking relationship    
List of authorised signatories  

4. 		  
The original document or certified copy of the following document to verify full names, date of birth, nationality and identity number of the persons referred to above:
 
Identity Document*  

5. 		  
The contact details and residential address of the persons referred to above.

6. 		  
Identification and verification (of identity only) of:
– all legal persons holding a 25% or more shareholding in the company;

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If such a shareholder is a company:
The original document or certified copy of the following documents to verify registered name, number and address of the company:
 
    
Most recent Certificate of Incorporation (CM1) and Memorandum of Association   
Most recent Notice of the Registered Office and Postal Address (CM22)  
 
If such a shareholder is a Close Corporation:
The original document or certified copy of the following documents to verify registered name, number and address of the close corporation:
 
Most recent Founding Statement and Certificate of Incorporation (CK1)  
Most recent Amended Founding Statement (if applicable) (CK2)  
 
If such a shareholder is a Foreign Company:
The original document or certified copy of the following document to verify registered name, number and address of the foreign company
 
Verified by any reasonably practical means  
 
If such a shareholder is an Other Legal Person (church, charities, local government, social clubs etc.): 
The original document or certified copy of the following document to verify the name, address and legal form of the other legal person
 
Constitution or other founding document  
 
If such a shareholder is a Trust:
The original document or certified copy of the following documents to verify identifying name, identifying number and address of the Master of the High Court where the trust is registered if applicable
 
Trust Deed   
Letter of Authority   
Amended Letters of Authority (if relevant)  

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– CLOSE CORPORATIONS

1. 		  
The original document or certified copy of the following documents to verify registered name, number and address of the close corporation:
 
Most recent Founding Statement and Certificate of Incorporation (CK1)  
Most recent Amended Founding Statement (if applicable) (CK2)  

2.		  
The original document or certified copy of one of the following documents to verify trade name and business (physical) address of the close corporation:
 
Utility bill (e.g. an electricity bill) (0 – 3 months old)   
Bank statement (other banking institution) (0 – 3 months old)   
Recent lease or rental agreement   
Municipal rates and taxes invoice (0 – 3 months old)   
Telkom account (cellular phone is not acceptable) (0 – 3 months old)   
Recent SARS return / IRP5  

3.		  
Identification and verification (of identity only) of:
– each member of the close corporation; and
– each natural person who purports to be authorised to establish a business relationship or enter into a single transaction on behalf of the company.
Close corporation resolution conferring authority to conclude transaction or establish banking relationship   
List of authorised signatories  

4.		  
The original document or certified copy of the following document to verify full names, date of birth, nationality and identity number of the persons referred to above:
Identity Document*  

5. 		  
The contact details and residential address of the persons referred to above.

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– FOREIGN PRIVATE COMPANIES

1. 		  
The original document or certified copy of the following document to verify registered name, number and address of the foreign company:
 
Official Documents issued in the Country of Incorporation  

2. 		  
The original document or certified copy of one of the following documents to verify trade name and business (physical) address of the foreign company:
 
Utility bill (e.g. an electricity bill) (0 – 3 months old)   
Bank statement (other banking institution) (0 – 3 months old)   
Recent lease or rental agreement   
Municipal rates and taxes invoice (0 – 3 months old)   
Telkom account (cellphone is not acceptable) (0 – 3 months old)   
Recent SARS return / IRP5  

3. 		  
Identification and verification (of identity only) of:
 
– the manager of the foreign company in respect of its affairs in South Africa; 
– all natural persons who purport to be authorised to establish a business relationship or enter into a single transaction in respect of the foreign company’s affairs in South Africa; and 
– all natural persons holding a 25% or more shareholding in the foreign company
 
Obtain and review the original document and retain a copy of one of the following documents to verify full names, date of birth, nationality and passport number or identity number of the persons referred to above:
 
Identity Document*   
Passport  

4. 		  
The contact details and residential address of the persons referred to above.

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– TRUSTS

1. 		  
The original document or certified copy of the following documents to verify identifying name, identifying number and address of the Master of the High Court where the trust is registered if applicable:
 
Trust Deed  
Letter of Authority  
Amended Letters of Authority (if relevant)  

2. 		  
Identification and verification (of identity only) of all natural persons who are associated with the trust as:
 
– trustee; 
– natural person authorised to establish a business relationship or enter into a single transaction on behalf of a trust; 
– beneficiary; and 
– founder/donour:
 

The original document or certified copy of the following document to verify full names, date of birth, nationality and identity number of the persons referred to above:
 

Identity Document*  

3. 		  
The contact details and residential address of the persons referred to above.
 

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– PARTNERSHIPS

1. 		  
The original document or certified copy of the following document:
 
Partnership agreement, or  
Written confirmation from all the partners that there is not a written partnership agreement in place.  

2.		  
Identification and verification (of identity only) of:
 
– every partner of the partnership including silent or anonymous partnerships; 
– the person who exercises executive control over the partnership; and 
– all natural persons who purport to be authorised to establish a business relationship or enter into a single transaction on behalf of the partnership who are identified in terms of:
 
Written disclosure of all partners including silent partners   
Partner’s resolution conferring authority to conclude transaction or establish banking relationship (Power of Attorney)   
List of authorised signatories  

 
The original document or certified copy of the following to verify full names, date of birth, nationality and identity number:
 

Identity Document*  

3. 		  
The contact details and residential address of the persons referred to above.
 

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– PUBLIC COMPANIES (quoted on a recognised stock exchange listed in the Schedule to the FICA exemptions )
 
Board resolution conferring authority to conclude transaction or establish banking relationship (not required to identify directors)   
List of authorised signatories  

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– RSA ACCOUNTABLE INSTITUTIONS AS INTERMEDIARIES
 
The following documents:
 
Written confirmation that the intermediary is an accountable institution [otherwise verify identity of both intermediary and client]   
Written assurances that the intermediary has performed or will apply KYC on the client   
Introduction certificate from financial intermediary   
Mandate or Board resolution authorising the intermediary to act on behalf of the client  
 
– 		 
SA REGULATED FINANCIAL INSTITUTIONS/ CORRESPONDENT BANKS OR COUNTER PARTIES
 
Evidence of banking license or authorisation to conduct financial and/or banking business  

 

   
–		  
NON SA REGULATED FINANCIAL INSTITUTIONS/ CORRESPONDENT BANKS OR COUNTER PARTIES
 
Evidence of banking license or authorisation to conduct financial and/or banking business; OR  
Evidence of license from home country Central Bank or relevant supervisory body.  
Written confirmation from SARB that the institution is subject to equivalent AML regulation and supervision to that which applies in South Africa.   

Information of institution‘s internal policies on KYC and money laundering control.
 

 

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– OTHER LEGAL PERSONS
 (E.g. churches, charities, local government, social clubs, Scouts & Guides)

1. 		  
The original document or certified copy of the following to verify the name, address and legal form of the other legal person:
 
Constitution or other founding document  

2. 		  
The original document or certified copy of one of the following documents to verify trade name and business (physical) address of the legal person:
 
Utility bill (e.g. an electricity bill) (0 – 3 months old)   
Bank statement (other banking institution) (0 – 3 months old)   
Recent lease or rental agreement   
Municipal rates and taxes invoice (0 – 3 months old)   
Telkom account (cellphone is not acceptable) (0 – 3 months old)   
Recent SARS return / IRP5  
 

3. 		  
Identification and verification (of identity only) of all natural persons who purport to be authorised to establish a business relationship or enter into a single transaction on behalf of the legal person

The original document or certified copy of the following document to verify full names, date of birth, nationality and identity number of the persons referred to above:
 

Identity Document*  
4.  The contact details and residential address of the persons referred to above.
 
* IDENTITY DOCUMENT
     
  The identification Amendments Act, 2000 (Act No 28 of 2000) came into operation on 13 October 2000. The Act reads as follows: -

“As from the date of commencement of the Identification Amendments Act, 2000, all forms of identity document other than the green, bar-coded identity documents issued in accordance with the identification Act, 1986 will cease to be valid.”

Refer to the Government Gazette, vol. 422, No 21430 Cape Town dated 2 August 2000.
 

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