Laws to prevent money laundering
South African banks are regulated by specific laws designed to combat money laundering, which is the abuse of financial systems to hide and/or disguise the proceeds of crime locally and internationally.
South African banks are regulated by specific laws designed to combat money laundering, which is the abuse of financial systems to hide and/or disguise the proceeds of crime locally and internationally.
Regulation requires banks to keep accurate information about their customers
Banks are required to share customer information with SARS if a customer has to pay tax or is a tax resident outside of South Africa
Check and confirm the accuracy of your information by logging in to the FNB App, contacting your banker, contacting the relevant Helpdesk or alternatively by visiting your nearest FNB branch.
What is FICA?
FICA stands for the Financial Intelligence Centre Act 38 of 2001.
In 2001 South Africa introduced FICA to help fight financial crimes such as money laundering, the financing of terrorist activities, and to protect banking customers from such crimes. According to FICA, banks must ensure that the customer information that the bank keeps is correct and up to date as it is important for banks to know their customers.
In general, when a new account is opened, the bank will require the customer to provide specific information including a valid identity document or passport, as well as valid proof of residential address before it can establish a business relationship with the customer.
Our obligations under FICA
We are required to conduct ongoing due diligence in respect of our customers and business relationships, which includes keeping specific information up to-date.
To ensure compliance with these regulatory obligations, we conduct a periodic refresh of customer information and may require customers to re-confirm information or
provide additional documentation as part of this process. In line with the terms and conditions governing the banking relationship,
we need our customers to co-operate in this regard by providing the requested information.
What you need to do?
Please keep us updated when any of your information changes. Help us by confirming that your details that we have on record have not changed when we ask you to confirm this.
The information and documents required from time to time vary depending on whether you are our customer on an individual capacity or part of an entity,
but we will guide you through these requirements when requesting the information.
What happens when we don't get your updated information?
FICA prevents us from concluding a transaction in the course of a business relationship or giving effect to a single transaction where we have been unable to obtain the required
information or conduct ongoing due diligence. This may lead to restrictions being place on your account(s), in order to comply with the bank's regulatory obligations,
and in accordance with the terms and conditions applicable to the banking relationship. We deeply value your relationship and are committed to providing you with the
highest level of service which includes ensuring uninterrupted banking services, and helping you bank safely.
Ways to update your information
You may receive a notification on your FNB App that you have outstanding tasks or we may send you a communication notifying you that we need your FICA information. Please provide your most up-to-date information or confirm that your details that we have on record have not changed using one of the following ways:
What is 'Foreign Account Tax and Compliance Act' (FATCA) in South Africa?
The Foreign Account Tax and Compliance Act (FATCA) is a piece of legislation in the United States used to identify American Tax Residents abroad.
South Africa elected to participate in FATCA by signing up through an Inter-Governmental agreement (IGA). This requires the Bank to obtain a customers
Tax Residency and report any customer who is tax resident in the US to SARS who will then on-report it to US Revenue Authority.
What is the 'Common Reporting Standard (CRS)'?
The Common Reporting Standard (CRS) is a standard agreed to by many revenue authorities around the world to share information with regards to preventing tax evasion
and tax fraud. South Africa as a jurisdiction has decided to participate in this standard, this requires the Bank to obtain Tax Residency information of its Account Holders
and share this information with SARS.
How does the 'Common Reporting Standards' (CRS) reporting work in South Africa?
Common Reporting Standard (CRS) obligations are imposed on South African financial institutions. The CRS Regulations were issued under the Tax Administration Act, 2011 (TAA).
The CRS implementing legislation requires that the model CRS must be applied consistently with the Organisation for Economic Cooperation and Development (OECD).
Our obligations under CRS and FATCA
Due to international and local legislative requirements, the South African Revenue Service (SARS) requires FirstRand Group (which includes FirstRand Bank Limited -
the Bank) to collect and report certain information about a customer's tax residencies. If a customer is required to pay tax or are tax resident outside of South Africa,
the Bank is legally obliged to pass on the information to SARS. Whether the customer is a resident for any tax purposes in another country will depend on the laws of that foreign country.
The Bank is also required to maintain and reconfirm customer information and documentation as per the Financial Intelligence Centre Act, Act 38 of 2001 (FICA), as amended.
Impact of FATCA on customers
Customers born in the United States of America or hold an American citizenship or nationality, an IRS Form W-9 must be completed in addition to this form (found on the IRS website)
and must provide their United States of America Tax Identification Number (TIN). Should they claim to not be a United States citizen and provide an IRS Form W-8,
a declaration of loss of citizenship/nationality must be provided.
Impact of CRS on customers
All customers will be required to declare where they are tax resident (either locally, abroad or both) when opening an in-scope product. Customers are identified as been potentially
tax resident by a collection of indicia such as citizenship or nationality which may require us to obtain extra or supporting documentation relating to their tax residency claims.
What happens if a customer does not provide the requested information?
We will be required to report the non-compliant status of the customers' account to SARS and the account may be subject to penalties for non-compliance and/or be restricted (frozen).
What documents are required for FATCA/CRS account opening?
During account opening a customer will be required to provide their tax residency information. The bank will ask this as part of the account opening processes,
alternatively it may be provided in a stand-alone document called a Self-Certification.
Why does the bank ask me for my tax information more than once?
The regulations require the bank to obtain this information during account opening. Since a customer's tax information and residency could change outside of the bank's knowledge, the bank is required to re-obtain the information on an on-going basis.
The Bank is also expected to monitor a customer and based on requirements laid out by SARS may ask the customer to re-confirm their information from time to time.
How do I know if I need to provide Tax Information?
You will either receive a notification on your FNB App or Online Banking that you have outstanding tasks, or we may send you a communication notifying you that we need your Tax Information.
Ways to update FATCA/CRS information
Please provide your most up-to-date information or confirm that your details that we have on record have not changed using one of the following ways:
