Question: What Is The Purpose Of FICA In South Africa?

Why do we need FICA?

FICA was introduced to fight financial crime, such as money laundering, tax evasion, and terrorist financing activities.

It is therefore a legal requirement for financial institutions to FICA their clients in order to prevent financial crimes..

What do I need to FICA my bank account?

What documents are acceptable as proof of residenceUtility bill, e.g. municipal water and lights account or property managing agent statement.Bank statement from another bank on an official bank document or form.Municipal councillor’s letter.Tax certificate.Recent active lease or rental agreement.More items…

What is FICA FNB?

Fica Requirements. The Financial Intelligence Centre Act (FICA) requires financial institutions, such as FNB Securities, to establish and verify the identities and residential addresses of their clients.

What is accepted as FICA documents?

Tax certificate. Recent active lease or rental agreement. Municipal rates and taxes invoice not older than 3 months. Account statement from a NCR (National Credit Regulator) registered service provider (NCR number must be visible/recorded on the document)

What is the purpose of the FICA legislation?

Under FICA, the FIC works to maintain South Africa’s financial system, and promote economic growth and social development. The FIC also has the mandate to supervise financial institutions, promote compliance with the law, identify proceeds of crime, and combat money laundering and terrorism financing.

Who needs to comply with FICA?

Who does FICA affect?A practitioner who practices as defined in section 1 of the Attorneys Act 53 of 1979.A board of executors or a trust company or any other person that invests, keeps in safe custody, controls or administers trust property within the meaning of the Trust Property Control Act 57 of 1988.More items…•

What does FICA stand for?

Federal Insurance Contributions ActFICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck. Your nine-digit number helps Social Security accurately record your covered wages or self- employment. As you work and pay FICA taxes, you earn credits for Social Security benefits.

What are FICA documents in South Africa?

FICA documents requiredCopy of ID document (SA Citizens) / Passport (Foreign Nationals)Proof of residential address less than three months old (for example utility bill, store account statement, bank document with residential address, DSTV account, municipal letter) … Copy of SARS document confirming income tax number.More items…

Why was FICA established in South Africa?

FICA came into effect on 1 July 2001 to fight crimes such as money laundering, tax evasion, and other unlawful financial activities. This Act has put South Africa in line with similar legislation in other countries. … FICA aims to ensure that financial institutions know with whom they are doing business.

What does FICA mean in South Africa?

Financial Intelligence Centre ActIn 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.

How long does it take to FICA?

30 minutesPlease note that it can take up to 30 minutes for the FICA documents to be processed. You will receive an SMS once your application has been approved.

When did FICA go into effect?

1930sIn the 1930s, the New Deal introduced Social Security to rectify the first three problems (retirement, injury-induced disability, or congenital disability). It introduced the FICA tax as the means to pay for Social Security.