Guide to FICA & FAIS

FICAFinancial Intelligence Centre Act

What is FICA?Money laundering is the process by which money obtained from illegal sources is given the appearance of having come from a legitimate source. The majority of criminal activities are perpetrated to achieve one thing - Money! If money is generated by crime, it is useless unless the original tainted source or in-tended usage of funds can be disguised as it could connect the criminals to the il-legal activity and law enforcement officials would seize it.

In today’s globalised economy, criminals can generates huge sums of money through fraud, drug trafficking, arms smuggling and many other heinous crimes. These criminals are constantly adapting their activities to disguise their “dirty money” and targeting financial institutions. Not only does this cost countries bil-lions a year, it is also providing the resources for international terrorism to grow. Governments and international bodies have undertaken efforts to deter, prevent and apprehend money launderers. Financial institutions have likewise undertak-en efforts to prevent and detect transactions involving “dirty money”, both as a result of government requirements and to avoid the reputational risk involved.

In 2001, the South African government introduced the Financial Intelligence Centre Act (“FICA”) and other applicable Anti Money Laundering and Counter-ing of the Financing of Terrorism legislation to combat money laundering and the financing of terrorism. FICA contains a number of control measures aimed at facilitating the detection and investigation of money laundering and terror-ist financing and imposes specific responsibilities on financial institutions that relate to commencing a business relationship with a client as well as during the lifecycle of the business relationship. This includes, inter alia, the requirement to “Know Your Client” (KYC) by establishing and verifying the identity of all clients prior to establishing a business relationship or concluding a transaction.In addition, information should be updated on a regular basis to ensure client information remains accurate and up-to-date as well as to align to any changes in legislative and/or global industry standards.

FICA

Full Name

Date of Birth

Country of Citizenship / Nationality

Identity Number

For South African residents:Green, bar-coded identity document

For foreign residents:Valid passport

Current Residential (Physical) Address

No older than 3 Months

Recent documentary evidence of your residential address(e.g. utility bill, bank statement with your name and address on it, cell phone account.)

No Postal Addresses are allowed.

Bank Statement /Cancelled Cheque

No older than 3 Months

An electronic statement sent to you by your bank with your name and address on it.

An original cancelled cheque.

Information Required Documentation Required

Financial Intelligence Centre Act

FAISFinancial Advisory & Intermediary

Services Act

What is FAIS?FAIS, the Financial Advisory and Intermediary Services Act, is legislation that impacts on the financial services industry and aims to regulate the giving of advice and rendering of intermediary services to clients, as well as certain other issues.The Act impacts on most financial institutions, financial service providers and their representatives.

How are the FAIS objectives being achieved?FAIS requires of Asset Tree as a licensed financial service provider (FSP) to:

- Determine the financial needs of our clients- Provide appropriate advice to clients after having established their relevant facts- Assist clients to make informed decisions - Establish an effective complaints resolution mechanism - Ensure that Asset Tree’s intermediaries are competent - Ensure that Asset Tree acts with due care and diligence, and in the interests of the client.

The objectives of FAISThe objectives of FAIS are to:- Protect the clients who use financial services and products- Protect the financial services industry, and- Protect intermediaries.