Explanation notes based on the regulations to the Financial Intelligence Centre Act 38 of 2001



Explanation notes based on the regulations to the Financial Intelligence Centre Act 38 of 2001 WHEN CLIENT IS A SOUTH AFRICAN CITIZEN OR RESIDENT (OR FOREIGN NATIONAL) REGULATION 3:INFO TO BE OBTAINED (1)(a) full names; (b) date of birth; (c) identity number;(where client is a foreign national his nationality must be obtained instead of his identity document: the rest of the info is the same as with a SA citizen or resident) (d) income tax registration number (if he has one); and (e) residential address. The above information must be obtained for every client and for every person on whose behalf client acts or who acts on behalf of client and the authority to act as aforesaid must be obtained (e.g. a power of attorney) (2) Where we are aware or should be aware that a person does not have legal capacity to act for himself without the assistance of another person, we must, in addition to the particulars referred to in subregulation (1) above, obtain the following information for that other person- (a) his or her full names; (b) his or her date of birth; (c) his or her identity number; (d) his or her residential address; and (e) his or her contact particulars. REGULATION 4:VERIFICATION OF THE ABOVE The information required in 3 (1) (a), (b) and (c) must be verified by comparing same with an identity document of that person or with a similar document provided that document contains a photograph of the person, his full names or initials and surname, his date of birth and identity number. The information required by 3 (1) (d) must be verified by comparing the income tax registration number with a document issued by SARS bearing such number and the name of the person. The manner of verification of address and contact particulars has not been set out, but until further notice discretion and common sense should be used. The writer believes a telephone account and rates statement addressed to that person should suffice. WHEN CLIENT IS A CC OR COMPANY Reg 7 (a) registered name of CC or Company; (b) registration number of CC or Company; (c) registered address of CC or Company; (d) the name under which the CC or company conducts business; (e) the address from which the CC or Company operates or if it operates from multiple addresses: (i) the address of the office seeking to establish a business relationship / enter into a single transaction; and (ii) the address of its head office; (f) In the case of a company (i) full names, date of birth and identity number or name of country (if foreign or national) of : (aa) the manager; and (bb) each natural person who purports to be authorised to enter into a business relationship or transact on behalf of the company; and (ii) the following info in respect of every natural or legal person, partnership or trust holding 25% or more of voting rights at a general meeting: persons : full names, date of birth & identity number or name of country (if or foreign national); cc/co: registered name, registration number, registration address, trade name & business address; foreign co: name and number under which it is incorporated, and address where it is situated for purposes of incorporation; “other legal person” :name, address from which it operates and legal form; partnership: name; trust: identifying name and number of the trust. (g) In the case of a cc (i) full names, date of birth and identity number or name of country (or if foreign national) of : (aa) each member; (bb) each natural person who purports to be authorised to enter into a business relationship or transact on behalf of the cc; and (h) exempted (i) in the case of a company, the residential address and contact particulars of- (i) the manager; (ii) each natural or legal person, partnership or trust holding 25 % or more of the voting rights at a general meeting of the company concerned; and (iii) each natural person who purports to be authorised to transact on behalf of the company; (j) In the case of a cc, the residential address and contact particulars of- (i) each member; and (ii) each natural person who purports to be authorised to transact on behalf of the cc. VERIFICATION OF INFO OF CC’S AND SOUTH AFRICAN COMPANIES: (a) the registered name, registration number and registered address must be compared with – (i) in the case of a company , the most recent versions of the Certificate of Incorporation (form CM 1) and Notice of Registered Office and Postal Address (form CM22), bearing the stamp of the Registrar of Companies and signed by the company secretary; or (ii) in the case of a cc, the most recent versions of the Founding Statement and Certificate of Incorporation (Form CK1), and Amended Founding Statement (Form CK2) if applicable, bearing the stamp of the Registrar of Close Corporations and signed by an authorised member or employee of the close corporation; (b) the trade name and business address : information which can be relied on taking into account guidance notes (still to be advised) ; (c) information requested in Reg 7(f) and (g) must be verified consulting the Regulations concerning foreign companies, other legal persons, partnerships and trusts; (d) exempted (e) Any other source if reasonably necessary. When client is a foreign company, other legal person, partnership or trust the Regulations must be consulted to obtain the correct information. Kindly note that the above notes which have been compiled by Renette Rauch Attorneys (611 Scott’s Corner, 10 Plein Street, Cape Town, 8001 Tel 461 5684 ) are meant only as explanation notes based on the regulations to the Financial Intelligence Centre Act 38 of 2001 and should not be used in practice unless verified. Renette Rauch cannot accept liability for any errors contained herein or information omitted from this document. For more information kindly visit the following websites: www.treasury.gov.za-click on FIC Act (government gazette No.22886 Notice No 1262:date 20011203 and for the Regulations act 13 December 2002) or the Estate Agency Affairs Board - An on-line manual that helps real estate agents understand and implement section 29 of the new Financial Intelligence Centre Act will be available to download from their homepage at end of June 2003. Visit www.eaab.org.za to view the report or contact the EAAB information department on (011) 880 9994 for further information.