FICA compliancy is not a new term and South Africans should, by now, be fairly familiar with the concept of having to produce documents confirming their identification and certain additional information.
It is important to note, however, that the risk-based approach to FICA allows accountable institutions a degree of control when it comes to the documentary evidence which they require in order to verify information in term of the requirements of the Act.
In this regard, there is no ‘one size fits all’ set of documents and as such documentary proof will be requested by the accountable institution based on the nature of the transaction, the nature of the client and in accordance with the institution’s due diligence protocols.
An inability and/or refusal to provide such documentation when requested may hinder the FICA verification process and prohibit the accountable institution from on-boarding the party as a client to the institution.
Compliancy and co-operation are key in ensuring a smooth and hassle-free process.