FIAS & FICA
The Financial Advisory and Intermediary Services Act, also know as FAIS, aims to regulate financial service providers (FSPs) by protecting you against improper conduct by such FSPs. The Act makes provision for FSPs to be licensed and authorized through the Financial Sector Conduct Authority (FSCA).
The FSCA also regulates members of the industry in the way they provide advice, as well as related intermediary services such as processing your insurance claims, in terms of certain financial products as defined by the Act.
Fit and proper requirements
The Act requires that competent and qualified persons render services and give advice (fit and proper requirements) so that you receive sound financial advice, services and products that best suit your individual needs. The products covered under FAIS include investments, insurance and deposits. Loans and credit agreements are not covered.
Internationally, governments have agreed to fight organized crime and terrorism by, among others, seizing the proceeds of crime and making money laundering a criminal offense. Since the 1980s many countries have passed laws that demonstrate their commitment to this effort.
South Africa has implemented a law in line with international law that is designed to combat money laundering, which is the abuse of financial systems in order to hide and/or disguise the proceeds of crime. This law is known as the Financial Intelligence Centres Act 28 of 2001, also referred to as FICA.
In terms of FICA, all accountable institutions (such as banks) have specific duties to help prevent and reporting on money laundering.
FICA creates money laundering control obligations for banks and other institutions and professionals, such as estate agents, brokers, attorneys and insurance companies.
When conducting a transaction with us, you will be required to send us identifying documents that are applicable to you in order to assist us in complying with the law. These measures for us to identify our customers is a crucial element of any effective money laundering control system.