FICA and new business requirements

FICA was promulgated to combat money laundering activities and the financing of terrorist and related activities. It also imposes certain duties on institutions and other persons who might be used for money laundering purposes and the financing of terrorist and related activities. Momentum Collective Investments (RF) (Pty) Ltd is as institution accountable for identifying and verifying the identity of any prospective, new and existing clients. FICA also states how the different types of clients should be identified and which verification documentation is acceptable.

When making a new investment, Momentum Collective Investments (RF) (Pty) Ltd requires the following documentation:

Banking details

• A bank statement on an official letterhead (less than three months old) reflecting the name of the premium or contribution payer. If the account is not in the name of the premium or contribution payer, fill in and provide the documentation in accordance with the appropriate FICA checklist on the account holder.
• A letter from the bank on an official letterhead that confirms the bank account number, the account holder’s details as well as the type of account.
• A cancelled cheque (less than three months old) will also be accepted. If the account is not in the name of the premium or contribution payer, fill in and provide the documentation in accordance with the appropriate FICA checklist on the account holder.

Note: Bank statements obtained from the internet is not acceptable. However, a blank cancelled cheque is acceptable, but if the cancelled cheque is filled in, it should be less than three months old.

Natural persons or sole proprietor (FICA001), or natural persons (non-RSA residents) (FICA009)
Identification
If a South African (FICA001): 
Documents to verify identity, such as a copy of a valid identity document, passport or driving license (and must be accompanied by valid reasons as to why a green barcoded ID is not available). 
If a foreign national (FICA001): 
Documents to verify identity, such as a copy of a green barcoded ID, issued by the South African Department of Home Affairs, a copy of a valid passport or valid refugee or asylum seeker documents. 
If a non-RSA resident (FICA009):

• Identification of persons, with a valid passport.

• Refer to the information under ‘Minors’

• Refer to the information under ‘Legal incapacity’.

Proof of address
If a South African (FICA001):
A document to verify residential address. Refer to the under 'Documents to verify residential or physical address'.
If a foreign national (FICA001):
A physical address written on a document that verifies identification.
If a non-RSA resident (FICA009):
Identification of residential address.

Unlisted RSA companies (FICA002)
Identification
Identification of company:

• Registration certificate and/or memorandum of incorporation (please see FICA002 for any other documents that may be required).
• Number of directors and managers.
• Number of legal and/or natural persons who may exercise voting rights in excess of 25%.
• Resolution to identify who may act on behalf of the company.

• each managing director
• each natural person authorised to contract on behalf of the company
• each natural person or legal person holding 25% or more of voting rights.

Proof of address
Verification of physical address of company. Legal entities with more than 25% voting rights must provide proof of physical address. Refer to the information under 'Documents to verify residential or physical address'.

Close corporations (CCs) (FICA003)
Identification
Identification of the company:

• A CK1 (founding statement of incorporation).
• A CK2 (amended founding statement).
• Resolution to identify who may act on behalf of the CC (on a letterhead).

• each member of the CC;
• each natural person authorised to contract on behalf of the CC.

Proof of address
Verification of the physical address of the CC. Refer to the information under 'Documents to verify residential or physical address'.

Other legal persons (FICA004)
Identification
(Clubs, churches and schools)
Identification type of entity:

• Copy of the constitution, founding statement or document that established identity.
• Resolution to act on behalf of the entity.
• Verification for each person who is authorised to act on behalf of the entity.

Proof of address
Verification of the physical address of the entity. Refer to the information under 'Documents to verify residential or physical address'.

Trusts registered in RSA (FICA005)
Identification
The trust:

• A full trust deed and/ or other founding document.
• Letters of authority issued by the Master of the High Court, with a clear stamp.
• Proof of written authority signed by all the trustees (ie the resolution).

• Identification and verification of the founder, all trustees, each authorised representative and all trust beneficiaries.

Proof of address
Verification of the residential/ physical address of the founder, all trustees and each authorised representative. Refer to the information under 'Documents to verify residential or physical address'.

Partnerships (FICA006)
Identification
Identification of partnership: 

• Partnership agreement.
• Identification and verification of partners.
• Verification of the person who exercises control over the partnership.
• Verification of the person who is authorised to act on behalf of the partnership.

Proof of address
Verification of the residential/ physical address of each authorised representative and/or person with executive control. Refer to the information under 'Documents to verify residential or physical address'.

Identification
Identification of company:

• An official document issued by the country of incorporation witnessing the name (and trade name, if applicable) and number under which it was incorporated.
• Number of managers and directors.
• Number of legal and/or natural persons who may exercise voting rights in excess of 25%.
• Resolution to identify who may act on behalf of the company.

Proof of address
Business addresses from which it operates in both the country of incorporation and South Africa. Refer to the information under 'Documents to verify residential or physical address'.

Other FICA checklists or documents available:

• FICA008: FICA declaration by financial adviser(Not for Momentum financial planners/franchise agents/consultancies)
• FICA010: Identification and verification of listed companies
• FICA011: Confirmation of residential address by cohabitant or third-party homeowner

Minors
Minors must be treated in accordance with regulation 3(2) of the act, which stipulates that the accountable institution should verify the identity and residential address of the legal guardian of the minor. The minor must also be identified and verified by means of the following valid documents:

• A copy of an abridged birth certificate, or identity document, if older than 16;
• an affidavit from a parent confirming that the minor resides with parent (FICA011);
• a copy of the identity document of the parent signing the affidavit; and
• a utility bill in the name of parent signing the affidavit.

Legal incapacity
This is for a person acting on behalf of another.
Regulation 5(2) requires that both the client, who is legally incapacitated, and the person acting on behalf of the client must be identified and verified in accordance with the checklist for natural persons.
Here the following is necessary:

• A copy of a valid identity document, passport or driving licencem(and must be accompanied by valid reasons as to why a green barcoded ID is not available);
• a document to verify the residential address; and
• documents to confirm the authorisation (to act on the person’s behalf).

Documents to verify residential or physical address

We require any of the following documents reflecting the name of the person and the residential or physical address:

• A municipal or electricity provider or utility or service bill reflecting the name and residential address of the person (less than three months old).

• A property rental agreement reflecting the name and residential address of the person (less than 12 months old). 

• A residential or lease agreement must include:
• The name, particulars and signature of the lessee and the lessor;
• the term for which the lease applies;
• the erf number or street address;
• the lease number; and
• the date the agreement is signed (not older than 12 months)

• A property rates and taxes invoice reflecting the name and residential address of the person (less than three months old).
• If only the erf number (and no street name) is displayed, it is acceptable. However, an application for a clearance certificate is not acceptable as this is only an application and has not yet been accepted by the municipality.
  
  
• Examples of these invoices are the following:
  • If prepaid (eg utilities such as an electricity meter), proof of payment that reflects the date, stand number, account number, initials and
    surname of the person (less than three months old).
  • A mortgage statement reflecting the name and residential address of the person (less than three months old).
  • A Telkom account reflecting the name and residential address of the person (less than three months old).
  • A South African Revenue Service tax return or IRP5 issued by the employer reflecting the name and residential address of the person
    (less than 12 months old).
  • Correspondence from a body corporate or share-block association reflecting the name and residential address of the person (less than three months old).
  • A pay slip or salary advice reflecting the name and residential address of the person (less than three months old).
  • A short-term insurance document inclusive of the policy schedule listing proof of house content insurance reflecting the name and residential address of the person (less than 12 months old).
  • A bill or statement from a company contracted for services at the property given as the person's address reflecting the name and residential address of the person. Examples of such services are garden or pool or security monitoring services that are regularly billing the person (less than three months old).
  • A letter from the bank on an official letterhead confirming that the bank has KYC'ed the client in accordance with section 21 of FICA. This letter should reflect the name and residential address of the person.

• For cohabitants or persons living on the same premises:
• A filled in FICA011 form and the documentation provided by the person in whose name the proof of residence is noted.
  
  
• For rural or informal housing areas:
  • The headman must confirm the residential particulars on a letter that contains the headman's ID number as well as his stamp; or
  • a letter from the local South African Police Service (SAPS) in which the SAPS official states that he visited the person at the residential address and can confirm that the person resides at the address; or
  • the local authority confirming the residential address.