FICA Documents needed to adequately perform Due Diligence

FICA Documents needed to adequately perform Due Diligence

• 10 January 2024
• Money Laundering
• South African Accounting Academy

As the Financial Intelligence Centre Amendment Act (FICA as amended) takes a risk-based approach, the answer is often “it depends”

Whilst the Act does set out minimum requirements around the identification and verification of clients, there is no prescribed list of documents that should be collected for evidence and verification purposes. Help is at hand as over time there has become a generally accepted list of many FICA documents that Accountable Institutions use to evidence their client’s due diligence.

The following is discussed in an article published by DocFox:

• Proof of Identity

• Proof of Address

• Does the document need to be not older than 3 months?

• Juristic entities

Click here to access the Article:

https://blog.docfox.co.za/what-fica-documents-do-i-need-to-adequately-perform-due-diligence?utm_medium=email&_hsmi=79358648&_hsenc=p2ANqtz-9_AUu5QNGisFEHmVyDmazmvkP_2aW7Zqn0RnwtWiI6SA3a8PsHNyaOijrEKvHxl5PPlzGulaDOS9KUXnIMv5VQs4_-Vg&utm_content=79358648&utm_source=hs_email

Relevance to Auditors, Independent Reviewers & Accountants:

• The Financial Intelligence Centre Act (FICA) is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.

• As an auditor and independent reviewer, you need to consider that you & your clients who are Accountable Institutions, should be aware of articles that guide how to adequately perform customer due diligence.

Relevance to Your Clients:

• Relevant entities (specifically accountable institutions) must comply with the FIC Act, otherwise they could be held liable.

• Accountable Institutions should be aware of articles that guide how to adequately perform customer due diligence.

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