Regulatory and Process Changes Series – FICA Requirements

The Financial Intelligence Centre Act (FICA) was brought into legislation in 2001 and it includes control measures aimed at the detection and investigation of money laundering.

As Accountable Institutions, we are all required to “know our clients”, meaning we should establish and verifying the identity of all clients prior to establishing a business relationship or concluding a transaction with them.

The approach by each of the insurers has been slightly different to the recent introduction of Customer Due Diligence (CDD) and Anti-Money Laundering (AML) measures recently introduced.

Once a quote is accepted, depending on the insurer, we may ask for documents to be provided for the insurer to risk rate the client.

For Hollard and Capital Alliance, we will be requesting documents at the time that a new scheme is coming on. These documents include, but are not limited to, company documents, as well as documents relating to shareholders, directors and authorised persons. Old Mutual and Sanlam have in-house systems that they use to risk rate clients and so TSA has not been tasked to collect any documents on their behalf at this point in time

Please let us know if you have any specific questions relating to this or suggestions on how these new requirements can be handled in the most simple and effective manner.

Thank you and regards,
The TSA Team


Vol. 9 Issue 3

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