activate your Business Account by providing outstanding KYC documentation.

Transcription

1 activate your Business Account by providing outstanding KYC documentation. Frozen Business Accounts: KYC Remedial Action Background Legislation requires of all banks to know their customers, including verifying their clients sources of income and/or funds. To determine and verify sources of income, updated financial statements (income statements) showing detail of money coming into an account is, among others, deemed proof of source of income/funds. FNB regularly reviews its compliance with FICA regulations to ensure that accounts held by the bank can be supported by the required documentation, such as (but not limited to) copies of Identity Documents and proof of residential address, among other essential business documents, for the respective business entity and related parties. In terms of legislated requirements, accounts that are non-compliant must be identified and a hold placed on transactions until documentation has been obtained. According to Marcel Klaassen, Head of Growth at FNB Business, Clients need to ensure that they comply with the Financial Intelligence Agency Act (FICA) verification measures which are facilitated by all the banks in South Africa. The FICA processes are designed to ensure compliance of both individual and business banking clients with legislation. Terms and conditions apply.

2 What do you need to do to ensure that your business is compliant? To help protect your business, we recommend some of the following prevention measures: Update all changes to your business information Make it a priority to update all of your business information with your bank. Information such as the physical or postal addresses and details of the business owner(s) is important in ensuring regulatory compliance. Control access to your business accounts Access to a company s account is often delegated to a financial controller or the business owner, but you frequently see cases where more than two people have access to a company s accounts. Ensure that FNB is updated on any changes in this regard. Keep FNB updated with any changes in the founding documentation Inform FNB immediately if there are any changes in your entity s founding documentation, ie, when directors or trustees change, etc. Will you be notified if you are not compliant? We have sent numerous communications regarding compliance to clients in past months. Examples of these communications include the following: Examples of SMSs: 1 2 FNB :-) Submission of FICA documentation is required for acc xxxxxxxxxx. Failure to comply will result in your account being frozen on/after dd/mm/yyyy. Kindly contact the Business KYC Desk on FNB a div of FRB Ltd. An Authorised FSP and Credit Provider (NCRCP20) FNB :-) Your FICA and regulatory compliance documents are outstanding resulting in account profile being placed on hold for acc xxxxxxxxx. To activate the account please contact the Business KYC Desk on FNB a div of FRB Ltd. An Authorised FSP and Credit Provider (NCRCP20)

3 Example of ers: Website Mobisite Print provide us with your KYC documentation. Dear valued client, Request for client INFORMATION AND PARTICULARS of [Insert name of Business Client] ( Business ) Our latest records reflect that you are the contact person/authorised representative of the business named above. If this is not the case, or if you would like to verify the authenticity of this communication, please contact the Business KYC Desk on for assistance. As part of our legal obligation to maintain and verify client information on an ongoing basis, in accordance with regulatory requirements, we require the most recent KYC documentation pertaining to your business. We have engaged Symington & De Kok to assist us with this verification process. Symington & De Kok is bound by both professional and contractual confidentiality obligations and has acted as the trusted advisor for numerous businesses. Symington & De Kok will contact you to request up-to-date KYC documents for your business. Please note that we will never ask you to divulge any account security information such as your PIN numbers and passwords. If you are unsure about any communication or process, contact us on for assistance prior to divulging any information. Thank you in advance for accommodating us during this process. Please do not hesitate to contact us if you would like to discuss our KYC documentation process. Yours sincerely, Business KYC Desk [NOTE: As this is an electronic communication it is unsigned.]

4 Example of ed/posted letters: Client name Client address 24 October 2014 Dear valued client CLIENT INFORMATION AND PARTICULARS OF XXXXXXXXXXXXXXXXXXX We have attempted to make contact to request certain know-your-client or KYC -related documentation and financial information from you. All South African banks are obliged to obtain and verify prescribed client information and documents in terms of the Financial Intelligence Centre Act, Act 38 of 2001 (FICA) and, in addition, have to adhere to international best practice as well as the requirements of our domestic regulators. We are also required to conduct regular reviews and re-verify information and, in this regard, we need to ensure that the information and documents we hold are current. The result is that we might have to call upon our clients to provide the same or similar documents to us from time to time. This practice is not particular to FNB and all local banks are currently going through the same process. We apologise for the inconvenience that these requests may cause, however, failure to obtain the required documents will impact on our ability to maintain our banking relationship and to provide you with the service you expect. In circumstances where the documentary requirements are not met, we may be forced to freeze your bank account and/or end our banking relationship with you. With the above in mind, we request you to kindly contact the Business KYC Desk on within seven days to enable us to obtain the required documentation from you to prevent any interruption ( freezing ) in the operation of your account. Your assistance herein would be much appreciated. For your convenience, we have included a list of the required documentation below: 1. Financial information required (to satisfy the source of funds requirements under the regulations in terms of FICA): 1.1 Copy of your business latest audited financial statements (if applicable); or 1.2 Copy of your business most recent management accounts (if applicable); or 1.3 Copy of your business latest income tax returns filed with the South African Revenue Service accompanied by a declaration confirming source of income; or 1.4 Copy of your business latest accounting records; and 1.5 A signed declaration confirming your source of income/funds which can be obtained from the Business Manager or Branch Manager at your nearest branch. 2. Trust s documents: 2.1 Document creating the trust, ie, any of: Trust Deed (in respect of an inter vivos trust); or Will and Testament (in respect of a testamentary trust); or Founding Document (if applicable and if or does not apply). 2.2 Current Letter of Authority/Appointment given by the Master of the High Court (bearing the Master s stamp). If trust was established before 1985 and if there is no Letter of Authority/Appointment, then please provide the Trust Deed stamped by the Master of the High Court; 2.3 Written confirmation (resolution or minutes) signed by trustees reflecting authority of all person/s authorised to establish a business relationship or enter into a single transaction with FNB Business on behalf of the business; 2.4 Trust-related party documents: Individuals [all trustees, named beneficiaries (individuals and classes) and founders] and mandate holders/representatives: Identity Document for the individual and provide address and contact details; and Proof of residential address if the individual is a trustee If trustee/beneficiary/founder is a: Partnership: Partnership agreement/joint venture agreement, and provide address and contact details; and Proof of address if partnership is a trustee Close corporation: CK(1) or CK(2), and provide address and contact details; and Proof of address if the close corporation is a trustee Company: CIPC Certificate of Confirmation or CM1 or CoR14.3 or CoR14.1, and provide address and contact details; and Proof of address if company is a trustee Co-operative: Co-operative CR10 and CR1, and provide address and contact details; and Proof of address if co-operative is a trustee Trust: Document creating trust and Letter of Authority; and Identity Document and proof of residential address of all current trustees; Any other type of entity: Founding document or Constitution or bi-lateral agreement, and provide address and contact details; and Proof of address if entity is a trustee.

5 If your Business Account has been frozen, activate* it by contacting the specialised Business KYC Desk on For more information or general enquiries, contact the Business Desk on *The Business Account can be unfrozen in 24 hours if all relevant documents and declarations have been submitted and quality assured.