ESTABLISHING AND MANAGING BUSINESS RELATIONSHIPS CUSTOMER IDENTIFICATION AND VERIFICATION

Transcription

1 ESTABLISHING AND MANAGING BUSINESS RELATIONSHIPS CUSTOMER IDENTIFICATION AND VERIFICATION Legal background As part of the South African government's fight against money laundering, the Financial Intelligence Centre Act, 2001 (FICA) was promulgated and came into full effect on 30 June In broad terms, FICA provides for the establishment of an anti-money laundering regulatory body and introduces mechanisms aimed at preventing money laundering. This in effect enforces compliance by institutions that might otherwise be exploited for money laundering purposes. As an accountable institution as defined by FICA, Absa will have to comply and adhere to certain stringent requirements, which include: identifying all customers; verifying all information gathered in the identification process above; keeping records of all this information and documentation. When are the FICA customer identification and verification requirements applicable? FICA requires Absa to implement controls relating to the establishment of business relationships. However FICA goes further in extending these controls to existing clients of Absa. NEW CUSTOMERS: You (the prospective customer) will have to be identified, and the information you provide verified, before Absa may enter into a business relationship with you for the first time. EXISTING CUSTOMERS: The law requires Absa to keep their customer information current and up to date. Absa will therefore require customers to confirm that their information is correct when: - Applying for new products; - Renewing existing facilities e.g. overdraft limits; - Requests to change a customer type or entity change e.g. changing from a Close Corporation to a Company; and - At other natural points of interaction How will your identity be verified? Information supplied to the bank in person (where applicable) by you, will be verified against the documentation you submit as per the requirements in this document. This enables the bank to: Establish and confirm your identity, i.e. to ensure that you are who you claim to be. (Full names, date of birth, identity number and income tax number where applicable.) Establish and confirm your residential address (if you are an individual) and place of business (if you are a non-individual Close Corporation, Company, etc.) If applicable, identify your authority to establish the business relationship or conclude a single transaction on behalf of another person / entity. Confirm the identity of the person / entity who / that has given you authority to establish the business relationship. Identify the principal signatories on your account or business relationship. Identify intermediate parties, for example where an account is managed or owned by an intermediary or agent. If you're an individual person (see table below), and Absa deems it appropriate taking your risk profile into account, you will be expected to specify your source of income and source of funds. Page 1 of 14

2 Acceptable Identity Documents South African Citizens and Residents The official identity document in respect of South African citizens and residents is a green bar-coded identity document. Therefore customers are required to present a green bar-coded identity document in order to verify their identities when opening an account (new customers) or when verifying their details in terms of FICA (existing customers). In the case where the person is, for a reason that is acceptable to the institution unable to produce a green bar coded identification document, then the bank may accept the following documents in order to verify the required information: a valid South African passport, or a valid driver s license, or a valid temporary identity document issued by the Department of Home Affairs. a birth certificate for a minor not yet in possession of an identity document. A valid version of these documents means that they must be current and unexpired. Foreign Nationals Foreign nationals are required to produce a valid, unexpired passport as proof of their identity when establishing a new customer relationship/account and when undergoing re-identification and verification. If a foreign national is unable to produce a valid, unexpired passport, one of the following will be accepted: a valid unexpired section 24 permit; or a valid unexpired maroon refugee identity document Acceptability of verification documents Absa may only accept residential verification documents that are less than three months old when issued monthly e.g. monthly utility bills/retail accounts statements or less than a year old if issued annually, at the date of verification. Income tax and VAT registration numbers It is not yet a legal requirement to provide the income tax and VAT numbers of customers in order to complete the identification and verification process. However, this is likely to be the case in future. We suggest that where providing these details will cause little or no inconvenience to you, kindly provide these details now, which will spare you the inconvenience of having to do so later. Affidavits and Declarations In instances where the customer is unable to provide the bank with the residential address verification document, an affidavit or a declaration in the prescribed circumstances provides sufficient verification of the customer s residential address. Difference between an affidavit and a declaration An affidavit is a sworn statement. The person making the affidavit is required to appear before a Commissioner of Oaths and attest to the correctness of the information under oath. A declaration has the same effect as an affidavit but the person making the declaration is not required to take an oath. Where a declaration is utilized, the person making the declaration is required to provide the bank with an acceptable form of proof of residence. When will an affidavit or declaration be accepted? An affidavit or declaration for verification of residential address will be accepted where the customer or prospective customer is: A co-habitant, sub-lessee on a property where a separate utility bill is not provided to that person; Page 2 of 14

3 A scholar/child/minor/student with a parent; A spouse/partner residing at the same residential address as the property owner or primary tenant. An employee residing on an Employer s property The following forms are available from your branch: Affidavit to confirm Residential Address by Co-Habitant, Home Owner or Parent (Absa 3122); Declaration of Residential Address by Co-habitant, Home Owner or Parent (Absa 3874); Declaration of Residential Address by Employer where Employee resides on Employer s property (Absa 3850); and Affidavit (Business Address Verification) (Absa 3877). It is not acceptable to use an affidavit from customers as verification of his/her own residential address. Exemption 17 Exemption from providing proof of residential address Exemption 17 of the Financial Intelligence Centre Act (FICA) provides a solution to the challenge faced by Financial Institutions to verify Customers who are unable to provide the Bank with proof of residential address document when opening an account. Exemption 17 is applicable to first time customers who do not bank with Absa, opening a savings account. The use of Exemption 17 has been restricted to the following accounts: Flexi Save Mzansi BizStart YouthSave ActiveSave Easy Save Seniorsave Mega U Sekulula 2 Absa Prepaid Card Student Silver Account Transactional To adhere to the conditions of the exemption the following rules need to be complied with: You may not hold more than one transactional account. You may not transfer, withdraw or make payments exceeding R5000 a day or R25, 000 in a monthly cycle. The account balance may not exceed R at any time. You may not simultaneously hold two or more accounts of a similar nature with the same institution. - Note: You will not be able to transact on this account if the maximum balance of R25000 is exceeded. Your account will be systematically placed onto the FIC Restricted Account database. You will then be required to produce proof of your residential address to enable the lifting of the hold. No transfers may be made outside South Africa, unless the transfer emanates from a point of sale payment or a cash withdrawal in a country in the Rand Common Monetary Area. Page 3 of 14

4 Exemption 17 can only be applied to South African citizens and / or residents. IDENTIFICATION AND VERIFICATION REQUIREMENTS South African Citizens and Residents South African citizens and residents Full names; Date of birth; and Identity number Primary identification Green bar-coded identity document *Secondary identification Valid passport Valid drivers licence Valid temporary identity document *NB. Secondary identification is only acceptable in exceptional circumstances. Residential address Any one of the following valid documents reflecting the customers name and address: Utility bill (municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Recent signed lease or rental agreement; Municipal rates & taxes invoice; Account statement from a service provider registered in terms of the National Credit Act; Telephone or cellular telephone account; Official SARS document (Not E Filing documentation); Valid television licence; Television licence renewal confirmation letter; Subscription TV (e.g. Multichoice) statement; Home loan statement from another financial institution; Long/short term insurance policy documents, from another Financial Services Provider; Motor vehicle registration/licence documents; Municipal councillor letter; Body corporate/governing body letter or statement; ; Official employer letter for employees resident on company/institution premises; Official university/ technikon registration letter; Physical Site visit conducted for Verification Purposes Confirmation Form 3121 BX Tribal authority letter; Affidavit to confirm Residential Address by Co-habitant, Home Owner or Parent Form 3122EX; Declaration of Residential Address by Employer where Employee resides on the Employer s property Form 3850EX; OR Declaration of Residential Address by Co-habitant, Home Owner or Parent Form 3874EX. Page 4 of 14

5 Foreign Nationals Primary Identification Foreign Nationals Full names; Date of birth; Passport number; and Nationality Valid passport *Secondary Identification Residential address NB. Where a foreign natural person is NOT residing in South Africa it is NOT required to verify the address information. This information is only required to be obtained and recorded. Valid maroon identity document Valid section 24 permit verified in writing by the Department of Home Affairs Letter from an Embassy or Consulate stating the full names passport number and residential address of the customer. NB. Secondary identification is only acceptable in exceptional circumstances. Any one of the following valid documents reflecting the customers name and residential address: Utility bill (municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Account statement from a service provider registered in terms of the National Credit Act. Telephone or cellular telephone account; Official SARS document (not E filing documentation); Valid television license; Television license renewal confirmation letter; Subscription TV (e.g. Multichoice) statement; Home loan statement from another financial institution; Long/short term insurance policy documents; Motor vehicle registration/licence documents; Body corporate/governing body letter or statement; Official university/technikon registration letter; Physical site visit conducted for verification purposes confirmation Form Absa 3121; Tribal authority letter; Official letter from employer or company for employees resident on the premises; Affidavit or declaration (Forms Absa 3850, Absa 3122 EX, and Absa 3874). Page 5 of 14

6 Minors Full names; Birth Certificate; or Minors Date of birth; and Valid passport of minor and Parent/Guardians identity document identity number Residential address or Declaration of Residential Address by Co-habitant, Home Owner or Parent - Form 3874EX; Affidavit to confirm Residential Address by Co-habitant, Home Owner or Parent Form 3122EX Sole Traders Sole traders Full names; Date of birth; Identity number if a South African citizen or resident; Nationality and passport number if a foreign national See requirements in the tables for Individuals and Foreign Nationals. Residential and business address (both to be verified by separate documents); and Business name (operating name) See requirements in the tables for Individuals and Foreign Nationals. Page 6 of 14

7 Close Corporations Customer type Close Corporations Information required Registered name; Name under which the business is conducted (Trade name) Registration number; and Registered address. Verification documentation Most recent version of the Founding Statement and Certificate of Incorporation (form CK1), specifying the controlling members; OR Amended Founding Statement (form CK2), OR Independently obtained CIPC certificate of confirmation. The physical address from which the Close Corporation operates. If multiple addresses, the street address of the office seeking the business relationship and the Head Office address must be obtained and verified; and NB. In the event that the business address and the physical address is one and the same, then one document confirming and indicating as such is acceptable. Full names, date of birth and identity number (nationality if a foreign national), residential address and contact particulars of: Each member; and The mandated officials who are authorized to establish a business relationship or enter into a transaction as per resolution Any one of the following valid documents reflecting the customers name and business address: Utility bill(municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Telephone or cellular telephone account; Valid television license; Television license renewal confirmation letter; Subscription TV (e.g. Multichoice) statement; Official SARS document (not E Filing documentation); Mortgage loan statement from another financial institution; Long/short term insurance policy documents from another Financial Services Provider; Attorney/Auditor/Accountant letter on letterhead of Attorney/Auditor/Accountant confirming the address of the client; Motor vehicle licence/registration documents; Site Visit Form 3121BX; Affidavit (Business Address Verification) Form 3877EX or An affidavit from the controlling member/s confirming the operational address and trading name of the Close Corporation. See identification requirements in the tables for Individuals and Foreign Nationals - in respect of members and mandated officials. A resolution/mandate authorizing the persons as mandated officials is required. Page 7 of 14

8 South African Companies Registered name; Most recent version of the Certificate of South African Companies Registration number; and Incorporation (form CM 1) and Notice of Name under which the Registered Office and Postal Address (form business is conducted CM 22) bearing the stamp of the Registrar of. Companies and signed by the company secretary or Independently obtained CIPC certificate of confirmation. The physical address from which the company operates. If multiple addresses, the street address of the office seeking the business relationship; and Head Office address must be obtained and verified; and NB. In the event that the head office address and operational address is one and the same, then one document confirming and indicating as such is acceptable. Any one of the following valid documents reflecting the customers name and physical address: Utility bill (municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Telephone or cellular telephone account; Official SARS document (not E filing documentation); Valid television license; Television license renewal confirmation letter; Subscription TV (e.g. Multichoice) statement; Mortgage loan statement from another financial institution; Long/short term Insurance policy documents from another Financial Services Provider; Attorney/Accountant/Auditor letter on Attorney/Accountant/Auditor letterhead confirming the address of the client; Site Visit Form 3121BX; Affidavit (Business Address Verification) Form 3877EX; Motor vehicle registration documents or An affidavit from an authorised official confirming the operational address and trading name of the Company. Page 8 of 14

9 Full names, date of birth and identity number (nationality if a foreign national), residential address and contact particulars of: o The manager/ceo of the company; o The mandated officials authorised to establish a business relationship or enter into a transaction as per resolution; and o The natural person, legal person, partnership or trust holding 10% or more, of the voting rights at a general meeting of the company. See requirements in the tables for Individuals and Foreign Nationals - in respect of members and mandated officials. A resolution/mandate authorizing the persons as mandated officials is required. NB. It is not necessary to verify the residential address and contact particulars of these persons however it is necessary to obtain and record the information. If a shareholder is not a natural person, the Identification and Verification requirements for the entity or the business arrangement into which they fall needs to be applied. South African Listed Companies Registered name; Registration number. This information need not be verified, only obtained and recorded. The physical address from which the company operates; and If multiple addresses, the street address of the office seeking the business relationship; and The Head Office address must be obtained This information need not be verified, only obtained and recorded. Page 9 of 14

10 Foreign Companies Foreign Companies Name under which incorporated; Number under which incorporated; Name under which the company conducts business in the country where incorporated; and Name under which the company conducts business in SA. Address from where the company operates in the country where incorporated, or if it operates from multiple addresses, the address of its Head Office. and Address from where the company operates in SA, or if operating from multiple addresses the address of the office seeking to establish a business relationship or to enter into a single transaction with Absa Official document issued by an authority for recording the incorporation of companies of the country of incorporation of the foreign company, witnessing its incorporation and bearing its:- registered name and number of incorporation, and the registered address where it is situated for purposes of its incorporation. After 01 May 2011 Registration Certificate of External Company (CoR20.2) for foreign companies registered under South African Companies Act. Any one of the following valid documents reflecting the customers name and physical address: Utility bill (municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Telephone or cellular phone account; Official SARS document (not E filing documentation); Valid television licence; Television licence renewal confirmation letter; Subscription TV (e.g. Multichoice) statement; Mortgage loan statement from another financial institution; Long/short term Insurance policy documents from another Financial Services Provider; Attorney/Auditor/Accountant letter on letterhead of Attorney/Auditor/Accountant confirming the address of the client; or Motor vehicle registration/license documents. Page 10 of 14

11 Other Legal Persons Other Legal Persons (inclusive of schools, churches, stokvels, sport clubs, social clubs, provident funds and organs of state) Name of legal entity; and Legal form. Full names, date of birth and identity number (nationality if foreign national), residential address and contact particulars, of: o The mandated officials authorised to establish a business relationship or enter into a transaction Constitution or other founding document in terms of which the legal person is created; or If a Founding document or constitution cannot be provided, then declaration by all the mandated officials authorised to establish a business relationship on behalf of the entity, that there is no Constitution or Founding Document Refer to the sections relating to individuals who are South African citizens and foreign nationals and Resolution/mandate authorising the mandated officials (It is not necessary to verify the residential address and contact particulars of these persons) Address from which the entity operates Any one of the following valid documents reflecting the customers name and physical address: (documentation issued: NB. In the event that the informal body does not have an operating address, the address of at least one of the mandated officials must be verified. Utility bill (municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Telephone or cellular phone account; Official SARS document (not E filing documentation); Valid television licence; Television licence renewal confirmation letter; Subscription TV (e.g. Multichoice) statement; Mortgage loan statement from another financial institution; Long/short term Insurance policy documents from another Financial Services Provider; Motor vehicle registration/licence documents; Attorney/Auditor/Accountant letter on Attorney/Auditor/Accountant letterhead confirming the address of the client; Site Visit - Form 3121BX; Confirmation by member of Informal Bodies Form 3123BX;or Constitution or founding document or declaration by all mandated officials authorised to establish a business relationship. Page 11 of 14

12 Partnerships Partnerships Name of partnership Partnership agreement in terms of which the partnership was formed; or Declaration physically signed by all partners confirming that there is no partnership agreement Full names, date of birth and identity number (nationality if foreign national), of: Every partner; Every member of a partnership; The mandated officials who are authorized to establish a business relationship or enter into a transaction; and The person who exercises executive control over the partnership Refer to the sections relating to individuals who are South African citizens and foreign nationals and Resolution/mandate authorising the mandated officials If a partner is not a natural person, the entity must be identified as per the mandatory information for the category of customer within which it falls. Business address Any one of the following valid documents reflecting the customer s name and address. In the event that the Partnership does not have a business operating address, the address of at least one of the partners. Utility bill (municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Telephone or cellular phone account; Official SARS document (not E filing documentation); Valid television licence; Television licence renewal confirmation letter; Subscription TV (e.g. Multichoice) statements; Mortgage loan statement from another financial institution; Long/short term Insurance policy documents from another Financial Services Provider; Motor vehicle registration/licence documents; Attorney/Auditor/Accountant letter on Attorney/Auditor/Accountant letterhead confirming the address of the client; Site Visit - Form 3121BX. Page 12 of 14

13 Trusts Customer type Trusts Information required Trust name; Trust number; The address of the Master of the High Court where the trust is registered; and Particulars of named beneficiaries and where no named beneficiaries, details of how the beneficiaries are determined Verification documentation Letter of Authority/ Authorisation by Master (for SA trusts); Trust Deed; and Resolution/mandate authorising the mandated officials where available. Business address Obtain Residential address details of: Each trustee; Founder; Each named beneficiary The mandated officials authorised to establish a business relationship or enter into a transaction as per resolution / signing instruction / application form/mandate; Any one of the following valid documents reflecting the customer s name and address: Utility bill (municipal water & lights account or Property Managing Agent statement); Bank statement from another Bank on an official Bank document/form; Telephone or cellular phone account; Official SARS document (not E filing documentation); Valid television licence; Television licence renewal confirmation letter; Subscription TV (e.g. Multichoice) statement; Mortgage loan statement from another financial institution; Long/short term Insurance policy documents from another Financial Services Provider; Motor vehicle registration/licence documents; Attorney/Auditor/Accountant letter on Attorney/Auditor/Accountant letterhead confirming the address of the client; or Site Visit Form 3121BX. The Income Tax registration number An official SARS document Page 13 of 14