New legislation now requires us to:
South Africa has joined the worldwide fight against money-laundering and terrorist financing by becoming a member of the Financial Action Task Force, an inter-governmental body established by the G-7 nations in Paris in 1989.
Accordingly, our government has tabled its first piece of anti-money laundering legislation, the Financial Intelligence Centre Act (FICA).
The Act requires institutions such as banks, insurance companies and legal firms to subject their clients' transactions to far more scrutiny than before. In the event of non-compliance, representatives from these institutions face fines of up to R10 million and prison terms of up to 15 years.
Re-establish and verify all client details
RMB Private Bank must obtain prescribed information (eg, identity details, tax information) and verify what you give us against certain prescribed documents. This process is known as "Know Your Client", or KYC. It also applies to persons who represent you (eg, additional card holders on your account) or who may be connected to you (eg, trustees of your family trust).
Keep records of client transactions
RMB Private Bank is now required to keep records of your transactions as well as any information that we obtain from you. Under certain circumstances, we would be required to make this available to the relevant financial authorities.
Report suspicious transactions
RMB Private Bank employees are obliged to report any transactions they suspect, or ought to suspect, might be criminal in nature (eg, money-laundering, tax evasion or breaches of exchange control). This applies to any irregularities relating to your account; it may even apply to irregularities that are unrelated to any transaction of yours. Moreover, certain transactions are automatically reportable if they exceed a particular threshold.
If you are a new client
We will be unable to open an account for you until we have established and verified all of your details in accordance with the Know Your Client (KYC) process laid down in the legislation.
For further information please call our FICA Information team