The long-term consequences of illegal financial activity such as money laundering pose a daily threat to South African businesses. In response to an increase in this kind of crime, the Financial Intelligence Centre Act (FICA) has been amended to tackle illegal financial activities such as illicit financial flows, terrorism financing and tax evasion. This includes a number of control measures aimed at facilitating the investigation of money laundering, including requiring accountable institutions such as financial service providers to put in place anti-money laundering systems.

This includes the requirement to “Know Your Customer” (KYC) by establishing and verifying the identity of all clients prior to establishing a business relationship or concluding a transaction. Along with exposing your clients and business to potential harm, non-compliance with this requirement can result in heavy financial penalties.

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