Counter-Money Laundering & Registering Your Business in South Africa

What Every Foreign Business Seeking To Operate In South Africa Must Be Prepared To Disclose Is The Following “Compliance Packets”.

• Company statutory documents –Certificate of Registration, Memorandum of Incorporation, Certificate of Name Change (if applicable) and signed by a director of the company;
  
• Proof of physical operating address, e.g. invoice, rates bill etc. (less than 3 months old);

• SARS issued document confirming Income Tax and VAT registration number.

• Letter from the Auditors confirming shareholding;

• Directors resolution appointing the authorized representative of the Company;

• Certified copy of the ID document of the authorized representative;

• Certified proof of residential address of the authorized person, being not older than 3 months;

In respect of any individual or entity holding 25% or more in the Company:

• Certified copy of their ID and proof of residence, being not older than 3 months;

And, if applicable:

• Company statutory documents as above;

• Proof of physical business address.

Who Gets To Ask For Your Documents?

No business nor its officers and owners wants to disclose person information sufficient to enable identity theft or other criminal activity. The resistance to such inquiries is prudent, and efforts to purloin that information are real and constant. Vigilance is critical at all points of interface where such information is sought or volunteered. The responsible officer needs to ensure that anyone seeking information under FICA is actually entitled to the information. Further, the information should be “hand delivered” rather than posted, emailed, or cast into cyberspace. The only entities or individuals entitled to obtain your Compliance Packet are as follows: “Accountable Institutions” as defined under the FICA laws. Each must obtain from the business the Compliance Packet information and keep it current. This is not a mere “one & done” inquiry. This is a constant sequence of inquiry. “Accountable Institutions” include the following individuals and entities http://www.ssa.gov.za/Portals/0/SSA%20docs/Legislation/FIC%20Act%202001.pdf :

• Attorneys
• Auditors
• Trust Companies
• “Banks” however defined
• Securities Brokers
• Real estate agents
• Insurance Brokers
• Casino Operators
• Currency Dealers
• Financial Services Providers
• Any entity or person which sells, trades or “redeems” travelers’ checks (cheques)
• Any person who handles the money of others (“money remitter”)

Clients/Consumers include:

• Natural Persons
• Natural person acting on behalf of another, or
• Foreign national
• Close corporation
• South African company
• Foreign company
• Legal Persons
• Partnerships
• Trusts