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Fica exemption question

9 July 2015

A question has arisen as to whether the exemptions from Fica identification and verification procedures cover Bond Cancellations as it can be understood that the cancelling of a bond is not specifically mentioned as a transaction/type of transaction which requires verification.

See PART 4 EXEMPTIONS FOR ATTORNEYS AND ADMINISTRATORS OF PROPERTY of the Financial Intelligence Centre Act:

10. Exemption from Parts 1 and 2 of Chapter 3 of Act 38 of 2001
(1) Every accountable institution which performs the functions of an accountable institution referred to in item 1 of Schedule 1 to the Act is exempted, in respect of those functions, from compliance with the provisions of Parts 1 and 2 of Chapter 3 of the Act in respect of every business relationship or single transaction except for a business relationship or single transaction in terms of which—

(a) a client is assisted in the planning or execution of—

  1. the buying or selling of immovable property;
  2. the buying or selling of any business undertaking;
  3. the opening or management of a bank, investment or securities account;
  4. the organisation of contributions necessary for the creation, operation or management of a company or close corporation or of a similar structure outside the Republic;
  5. the creation, operation or management of a company or close corporation or of a similar structure outside the Republic;
  6. the creation, operation or management of a trust or of a similar structure outside the Republic, except for a trust established by virtue of a testamentary writing or court order;

(b) a client is assisted in disposing of, transferring, receiving, retaining, maintaining control of or in any way managing any property;

(c) a client is assisted in the management of any investment;

(d) a client is represented in any financial or real estate transaction; or

(e) a client deposits, over a period of twelve months, an amount of R100 000 or more with the institution in respect of attorney’s fees which may be incurred in the course of litigation.

And page 6 of the FICA Manual for Attorneys published by the LSSA.

FICA Act Booklet 2012 and FICA Manual for Attorneys

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