15 August 2023
At Rawson, we pride ourselves in doing things by the book, as we always have our clients’ best interests at heart. We therefore ensure that we follow a comprehensive client verification process.
What is FICA?
It has been, for some time now, a statutory legal requirement in terms of the Financial Intelligence Centre Act No. 38 of 2001, for all accountable institutions, which includes estate agents, to identify and verify all their clients. With the more recent amendments, in terms of the Financial Intelligence Centre Amendment Act 1 of 2017 (‘FIC’), effective 1 April 2019 :
- all accountable institutions must also risk assess and profile each and every one of their clients, irrespective of whether the client is a buyer, seller, landlord or tenant.
- This verification process needs to take place at the time that a lease agreement is legally entered into, and entails the completion by clients of client identification and verification questionnaires, along with the furnishing of various support documentation and accountable institutions risk-profiling and risk-assessing all their clients.
As required of all estate agencies, we have incorporated these newly enacted FIC amendments and requirements into our mandatory Risk Management and Compliance Programmes. We are therefore legally obliged to obtain the following information, as set out below, through our client identification and verification questionnaires and supporting documentation, in order for our estate agents to risk assess and profile all of our clients.
Therefore, to ensure the success of your transaction, we are required to request relevant information in terms of the Amendment Act. Ensure that any estate agency that you are dealing with is compliant with regard to the information requested and that you complete a risk assessment based on your classification as a Natural Person, Company, Closed Corporation, Partnership or Trust.
Lastly, kindly note that it is also a FIC requirement that all of the above information, together with supporting documentation, must be kept and stored safely by the estate agent for the required period of 5 years.
It is important to us that our clients are always informed and understand our legal obligations in terms of the Acts that govern us in real estate!
