Managing Your Money

FICA

FICA refers to The Financial Intelligence Centre Act. It was established to help combat money laundering and the funding of terrorism through effective customer identification. This way, criminals cannot abuse the banking system to "clean" the proceeds of crime and fund terrorism. To be compliant you need to provide the bank with the required personal information documents to verify your identity and residential address etc. These are called KYC documents.


KYC

KYC stands for Know Your Customer

KYC documents are:

  • Your green barcoded ID or a valid passport if you are a foreign national.
  • Your proof of residence - in other words, a document not older than 3 months which shows your name and residential address, not your PO Box address.
  • If other people hold cards linked to YOUR account, they must also provide their KYC documents.

Some examples of acceptable proof of residence are:

  • A utility bill
  • A landline or cell phone account
  • A municipal rates and taxes invoice
  • A letter from your councillor or local chief or
  • A retail statement
  • Latest tax return
  • A short term insurance policy


 AML

Money laundering is the process of making illegally-gained proceeds (i.e. “dirty money”) appears legal (i.e. "clean").

It mainly involves three steps:

  • Placement: This is when illegitimate funds are secretly introduced into the legitimate financial system
  • Layering: The illegal money is moved around to create confusion by depositing into or transferring through numerous accounts.
  • Integration: Finally, it is integrated into the financial system through additional transactions until the "dirty money" appears "clean."

Anti-money laundering is the continued battle against these criminal activities.

Choosing the right account for you:

Financial institutions offer many banking solutions which would service your requirements.

  • Decide why you need an account:
    • Is it for day to day transactions or
    • For savings
  • Shop around before you sign up for an account
  • You do not have to have a regular income or job to open an account

Who qualifies to open an account?

  • Locals
  • Foreign Nationals living in South Africa