Frequently Asked Questions

FICA (Financial Intelligence Centre Act 38 of 2001) is a South African law designed to combat financial crimes, including money laundering, fraud, and terrorist financing. It requires certain institutions, like banks, to verify client identities and implement measures to detect and prevent these crimes. 

Key aspects of FICA in South Africa: 

• Purpose:

FICA aims to assist in identifying the proceeds of unlawful activities, combat money laundering, and counter the financing of terrorism. 

• Scope:

The Act applies to various institutions and individuals who may be used for money laundering purposes, including financial institutions, estate agents, brokers, attorneys, and insurance companies. 

• Requirements:

These institutions are required to implement measures to verify client identities, keep records of transactions, and report suspicious activity to the Financial Intelligence Centre (FIC). 

• Risk-based approach:

FICA encourages a risk-based approach, where the extent of verification measures should match the client's risk profile. 

• Compliance:

Institutions must comply with FICA regulations to avoid legal consequences and to ensure the integrity of the financial system. 

• Ongoing due diligence:

FICA also includes the requirement for ongoing due diligence, meaning that financial institutions must continually validate and update client information. 

How FICA helps:

• Detects and prevents financial crime:

By requiring institutions to verify client identities and report suspicious activity, FICA helps prevent money laundering and other financial crimes. 

• Protects financial institutions:

FICA helps financial institutions avoid being used for money laundering and other illegal activities, protecting their reputation and preventing financial losses. 

• Ensures financial system integrity:

FICA helps to maintain the integrity of the South African financial system by combating financial crime.