NCA & FICA A brief overview Barry Robela

? nca fica fais

nca fais fica National Credit Act of 2005 Financial Intelligence Centre Act of 2001 fais Financial Advisory and Intermediary Services Act of 2002

nca Is about consumer protection in respect of finance agreements and to make credit available to all South Africans fica Is about protection against money laundering and tax evasion in SA fais Is about consumer protection on insurance products and to enhance integrity of the insurance industry

National credit act (NCA) Consumer Rights Any consumer has the right to: Apply for credit Protection against discrimination To know the real reason for refusal of credit Receive information in an official language of consumer’s choice Plain and understandable language Receive copy of contract Protection for consumer rights Transparency in the contract Confidential treatment To receive a Pre-agreement and quote A reckless credit agreement can be suspended by the court if the credit provider is found guilty of transgressing the NCA of 2005.

National credit act (NCA) Know your client Effective June 2007 Protect the consumer regardless of personal wealth, colour, race or religion. Introduction of controls for “over-indebtedness” and the “granting of reckless credit”. Applicant must fully and truthfully answer any request for information Understand the risks involved Understand his rights and obligations Furnish debt repayment history Furnish existing financial means, prospects and obligations

NCA GUIDANCE TOOL Click below to try

Financial intelligence centre act (FICA) Basic Requirements: Proof of identity: Green, barcoded South African identity book New South African identity card photograph, full names or initials and surname, date of birth, and Identity number. Valid South African passport Valid South African driver’s licence Proof of address: Municipal statement Transactional statement or official letter sent by post

noteworthy ‘Reasonable Steps’ during verification Address slips in ID books Photocopies, scanned and faxed IDs Politically Exposed Persons (High Risk Classification): Heads of State, Heads of Government and cabinet ministers; Influential functionaries in nationalised industries and government administration; senior judges; senior political party functionaries; senior and/or influential officials, functionaries and military leaders and people with similar functions in international or supranational organisations; members of ruling or royal families; Families of all the above

DOCUMENT HANDLING Scan clear documents Adjust scanner settings to achieve optimal resolution Scan document in proper orientation Name uploads correctly Utilise an organised filing system in which you can… Store original documents properly for submission to head office

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