Why FICA is important
If we do not FICA (verify and document) a client, we are breaking South African law and exposing our business to severe penalties, including administrative fines of up to R10 million for individuals and R50 million for companies, or even up to 15 years in prison for serious offenses.
Failure to perform Know Your Customer (KYC) / FICA due diligence can lead to the following:
- Suspended Services: We are legally required to refuse to establish a business relationship or execute transactions until the client is verified.
- Frozen Accounts/Assets: Banks or regulatory bodies can freeze accounts and block access to funds associated with the unverified or suspicious client.
- Severe Fines and Imprisonment: The FIC (Financial Intelligence Centre) can issue massive financial penalties, remediation directives, or pursue criminal prosecution against our company, executives, and employees.
- Reputational Damage: Non-compliance can permanently destroy client and partner trust, potentially leading to the loss of our business license or regulatory registration.
- Mandatory Reporting Obligations: If we fail to verify a client who subsequently displays suspicious behavior or acts illegally, we are legally obligated to file a Suspicious Transaction Report (STR).
For comprehensive regulatory guidelines and compliance obligations, visit the official Financial Intelligence Centre (FIC) website. https://www.fic.gov.za/faq/
please click on relevant link below in order to download the relevant client risk form.
Client Risk Profile - Legal Entity
Client Risk Profile - Private Individual
