In 2001, South Africa’s then-Minister of Finance Trevor Manuel estimated “anything between $2 billion and $8 billion are laundered through South African institutions every year”. The Financial Intelligence Centre (FIC) was established that same year to drive the country’s Anti-Money Laundering (AML) efforts.

The problem, of course, has not gone away entirely – and it’s impossible to know the full extent of it.

In terms of Section 21C of the FIC Amendment Act of 2017, Old Mutual is required to conduct ongoing due diligence in respect of its business relationships. Under the Financial Intelligence Centre Act (FICA), all South Africans have been asked to produce a range of documents when entering into relationships with establishments such as banks, cellular service providers and financial institutions. All financial institutions have a legal duty to work with the FIC by periodically conducting customer information reviews.

The intermediary’s role in AML

“While Old Mutual needs to comply with FICA, so do our intermediaries who are, after all, the go-between for us and our clients,” says Elna Erwee, Head of Distribution at Old Mutual Corporate. “As such, Old Mutual Corporate is now embarking on its ongoing due diligence obligations to ensure we have all the required information of our customers to continue the business relationship. When all those requirements are complete, Old Mutual Corporate will notify you that you (and your clients) are compliant.”

“However, if outstanding requirements are identified, you will receive an e-mail listing the outstanding information and documents required to be provided. Kindly submit these requirements to Old Mutual Corporate within one month of receiving the notification,” she says.

In addition to the basic identification information, Old Mutual will also gather information on related parties to legal entities (e.g. directors, members, trustees and mandated officials), third-party premium payers and third-party beneficiaries.

What information is required?

To facilitate the process, Old Mutual requires intermediaries to obtain and submit the required information and documentation. These include:

For the entity:

• Registered name
• Registration number
• Registered address
• Registration or founding documentation (e.g. CIPC, FSCA registration certificate, notice of incorporation, trust deed, etc.)
• Beneficial ownership or organogram reflecting company shareholders with voting rights. This organogram must appear on an official company letterhead signed by either the company secretary, chairman, director, or an independent attorney/accountant, comprising the required details of the company.
• Nature of the entity’s business
• Industry

For the mandated officials or authorised person(s):

• Full name and surname
• Date of birth
• Gender
• Nationality
• South African ID number, or Passport (with country of issue and expiry date)
• Residential address
• Contact details (contact number, cell phone and email address)

The person acting on behalf of the entity is also required to provide proof of their authority to act in that capacity.

Retirement funds are also required to provide the following information:

• Registered name
• Registration number
• Registered address
• Registration or founding documentation (e.g. FSCA registration certificate)
• Nature of the fund
• Source of funds
• Postal address

For the Principal Official and mandated official(s):

• Full name and surname
• Date of birth
• Gender
• Nationality
• South African ID number, or Passport (including country of issue and expiry date)
• Residential address
• Contact details (contact number, cell phone and email address)

Keeping our money clean

In South Africa, the Proceeds of Crime Act criminalises money laundering for all serious crimes, while the Prevention of Organised Crime Act mandates the reporting of suspicious transactions. “Money laundering is a serious problem, and the legal consequences of not co-operating with AML requirements can be severe,” Erwee says.

For example, in extreme cases, violation of those acts carries a fine of up to R100 million or up to 30 years’ imprisonment. Even minor cases could have negative reputational impacts, which in turrn have longer-term effects.

“In terms of the legislation, we require all our intermediaries to please comply with the requirements and we thank you in advance for your cooperation and your support in obtaining the information,” Erwee concludes. “Please be on the lookout for communication from our Intermediary Commission Division (ICD) team and help us to remain a responsible business by sourcing the relevant information.”

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