In today’s financial and property markets, compliance is not just a legal requirement — it’s a safeguard for both businesses and clients. At VDM Attorneys, we take FICA (Financial Intelligence Centre Act) and KYC (Know Your Customer) obligations seriously, ensuring that every transaction is both secure and transparent.
But what exactly is FICA/KYC, why is it important, and what documents do clients need to provide?
What is FICA/KYC?
- FICA is South Africa’s Financial Intelligence Centre Act, legislation aimed at preventing money laundering, fraud, tax evasion, and the financing of terrorism
- KYC (Know Your Customer) is the practical process of verifying the identity of clients and understanding the nature of their transactions.
Together, they protect the integrity of the financial system and ensure that property transfers, bond registrations, and other financial dealings are legitimate.
Why It’s Important
- Legal Compliance
All attorneys, banks, and estate agents are legally obligated to comply with FICA. Failure to do so can lead to penalties, reputational damage, and legal consequences.
- Protecting Clients
By verifying identities and financial sources, KYC prevents clients from unknowingly becoming involved in fraudulent or illegal transactions.
- Promoting Transparency
FICA requirements ensure a clear record of who is behind every transaction, helping to build trust between all parties involved.
- Reducing Risk
Proper compliance reduces the risk of property deals being delayed or blocked by regulatory concerns.
What Documents Do You Need?
The exact documents may vary depending on whether you are an individual, company, or trust, but generally include:
For Individuals
- A certified copy of your South African ID or passport;
- Proof of residential address (e.g., utility bill, lease agreement, rates account, not older than 3 months); and
- In some cases, proof of income or source of funds.
For Companies
- Company registration documents (CIPC);
- Resolution authorising a representative to act on behalf of the company;
- ID documents and proof of address for all directors and authorised signatories; and
- Tax clearance certificates or proof of income/source of funds where applicable.
For Trusts
- Trust deed;
- Letters of authority from the Master of the High Court; and
- ID documents and proof of address for trustees and beneficiaries.
How VDM Attorneys Supports You
At VDM Attorneys, we guide our clients through the FICA/KYC process step by step. We ensure that all documents are collected upfront to avoid unnecessary delays in property transfers or bond registrations.
By handling compliance properly, we help create a smoother transaction for buyers, sellers, estate agents, and financial institutions alike.
Final Word
FICA and KYC may feel like extra paperwork, but they are essential safeguards that protect both the legal profession and clients. With the right documents on hand, the process is quick and efficient - allowing your transaction to move forward with confidence.
At VDM Attorneys, compliance is part of the service excellence we deliver.