As part of our commitment to complying with the Financial Intelligence Centre Act (FICA) and South Africa’s Anti-Money Laundering (AML) requirements, we are currently in the process of verifying and updating client information for all policies and contracts. This is a critical step in meeting regulatory compliance standards and ensuring that our mutual clients' financial interests remain secure. This process will be completed by 31 December 2024 and for all un-remediated clients who have missing AML information we will place a compliance marker.
Implications for your clients
To meet these requirements, we will place a compliance marker on certain policies/contracts on 31 December 2024. While this is a temporary procedural measure, it may impact some transactions for your clients, such as:
- Changes to benefits
- New investment requests or disinvestment requests
- Policy updates
This marker will remain in place until we receive and verify the required client information. Once this is done, the marker will be promptly removed, and transactions will proceed as usual. Old Mutual has been working to address cases where client data has been successfully submitted. For these clients, the required information will be verified, ensuring compliance with AML standards.
Your Role as a Trusted Broker
We understand that you are assisting in collecting and submitting the necessary information, and we appreciate your partnership in this process. Your proactive engagement is key to ensuring that your clients experience minimal disruption.
Supporting Your Clients
We recommend communicating the following to your clients to ensure transparency and cooperation:
- Why the information is needed: To comply with AML regulations and safeguard their financial interests.
- Impact on transactions: Any restrictions are temporary and will be lifted once the required documentation is received.
- Next steps: Encourage clients to respond promptly to any requests for updated information to avoid delays.
Requotes and business going forward
In response to AML requirements, Old Mutual will adjust its requote process. Any future requotes will need to comply fully with these requirements, ensuring that no regulatory gaps exist. This shift emphasises the importance of submitting complete and accurate information upfront, streamlining the process for all parties involved.
Onboarding new clients
For new clients, the onboarding process introduced on 1 August remains unchanged. Intermediaries are already familiar with the updated requirements, which were designed to simplify the process while meeting AML standards. This consistency helps to maintain a clear framework for new business submissions.
Why is AML important?
Anti-Money Laundering measures are not just regulatory obligations; they are crucial in the global fight against financial crime. By enforcing stringent AML standards, we can help South Africa safeguard its financial sector from being exploited for activities such as fraud, corruption, and terrorism financing.
For intermediaries, compliance reinforces trust, strengthens their reputation, and ensures they remain on the right side of the law. Intermediaries are therefore encouraged to reach out to impacted clients we advised you of to ensure any outstanding information is submitted to Old Mutual without delay.
Provided we have accurate contact information, your impacted employers would already have received all the necessary details regarding the AML requirements. However, those needing a recap can refer to this article on AML on our content hub, or contact their Old Mutual Consultant for guidance.
For assistance, contact your Old Mutual Consultant or get in touch with your Old Mutual Consultant.