23 June 2025
As a law-abiding, compliant financial institution, we do whatever we can to ensure that we fulfil what the Financial Intelligence Centre Act (FICA) requires of us. To this end, preventing financial crimes that involve clients, is a critical factor in our adherence to the law.
The primary purpose of FICA is to combat financial crimes like money laundering, terrorist financing, and fraud, by establishing a legal framework for identifying and verifying client identities, record-keeping, reporting processes, and other compliance requirements. It aims to protect the financial system and national security by preventing the use of financial institutions for illegal activities.
Knowledge of clients is of paramount importance
Customer due diligence starts with an accountable institution knowing the identity of its client. In terms of section 21 of FICA, an accountable institution must, in the course of establishing a business relationship or entering into a single transaction, establish and verify the identity of the client and if applicable, the person representing the client as well as any other person on whose behalf the client is acting. This process provides a solid foundation for the establishment of a business relationship between an insurer and its client.
In 2024, the Financial Intelligence Centre (FIC) introduced PCC 59 which is a Public Compliance Communication. This communication provides guidance on compliance with the beneficial ownership requirements under FICA.
PCC59, in short, requires accountable institutions to determine the ownership and control structure of clients to identify the natural persons who ultimately own or control that client. In addition, we are required to verify the identity of beneficial owners and this means obtaining documentation such as share certificates, trust deeds, partnership agreements, and other relevant documents.
What does this mean for you in future?
You will soon notice some changes to our application forms, as we aim to fulfil our duties as an accountable institution. If you need any further information, please visit the website of the Financial Intelligence Centre at www.fic.gov.za.
