FINANCIAL INTELLIGENCE CENTRE ACT

These requirements will include documentation relating to the KYC(Know-Your-Customer) regulations as well. The FICA / KYC regulations apply for all clients/customers even if having recently transacted with us.
  • Agreement of Sale/Offer to Purchase document is signed by both parties (Note:  This is a legally binding document)
  • The appointing Conveyancing Attorneys receive the signed Sale Agreement and begin the transfer process.  They make contact with both parties.
  • All suspensive conditions to the Sale Agreement are called for and noted by the Conveyancing Attorneys together with the collection of all relevant FICA documents.
  • Once the bond is approved (if applicable) and all other suspensive conditions are duly met and fulfilled, the Conveyancer will draft transfer documents for signature by both parties.  Both the Seller and Purchaser are called to sign these documents timeously.
  • The Purchaser is requested to pay the transfer and bond costs to the Conveyancer who then proceeds to obtain various certificates and clearances necessary for submission to the Deeds Office.
  • The Conveyancer then applies for a Rates Certificate, the Transfer Duty receipt from SARS and Levy Clearance Certificate if applicable and the Guarantees are also issued by the Bond Attorneys.
  • The Seller together with assistance from the property consultant involved in the said transaction, provides the Conveyancing Attorney with Electrical Compliance Certificate and Entomology Certificate.
  • Once the Conveyancer has all the required documents and certificates, the transfer documents are sent to the lodging agents in Pietermaritzburg for lodgement.
  • The Bond Documents, Transfer Documents and Bond Cancellation documents are all lodged simultaneously in the Deeds Office.
  • The matter is then REGISTERED in the Deeds Office 7-10 working days after lodgement and at this stage the existing bond is cancelled and the new bond (if applicable) is registered.  The Purchaser now becomes the new owner of the property.
  • The Purchase price is then transferred to the Seller, the existing bond is settled and the Conveyancer furnishes the parties with disbursements and final accounts.
  • FINALLY, THE PURCHASER BECOMES THE LEGAL AND EFFECTIVE OWNER OF THE PROPERTY/REAL ESTATE.
  • THE DEAL MAKERS/AGENTS AND IN OUR CASE, MINDRY PROPERTIES CC, FINALLY HAVING DONE ALL THAT IS REQUIRED OF THEM IN BRINGING THE TRANSACTION TO FINALITY, IS PAID BY THE SELLER !!

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 intended usage of funds can be disguised as it could connect the criminals to the illegal 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 billions 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 undertaken 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 Countering 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 terrorist 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.

WHO IS RESPONSIBLE?

  • INDIVIDUALS
  • SOLE PROPRIETORSHIPS
  • PARTNERSHIPS
  • CLOSE CORPORATIONS
  • SOUTH AFRICAN COMPANIES (EXCLUDING PUBLIC COMPANIES ON APPROVED EXCHANGES)
  • PUBLIC COMPANIES (APPROVED EXCHANGES)
  • FOREIGN COMPANIES (EXCLUDING PUBLIC COMPANIES ON APPROVED EXCHANGES)
  • TRUSTS
  • OTHER LEGAL ENTITIES