••••
T RADE N E W S
Senwes review FICA process
Financial Intelligence Centre Act (FICA) - Act 38 of 2001
IN TERMS OF FICA SENWES IS OBLIGED TO VERIFY THE
IDENTITY OF CERTAIN CATEGORY CLIENTS, SUCH AS
CLIENTS TRADING ON SAFEX, CLIENTS WITH LONGTERM INSURANCE POLICIES AND THOSE INVOLVED
WITH DIESEL HEDGING. THIS PROCESS IS GENERALLY
KNOWN AS KYC (KNOW YOUR CLIENT.
S
26
ince the implementation
of FICA, Senwes has been
making all efforts to comply with
the requirements thereof. Initial
uncertainties, as well as amendments to this legislation over
time, compelled Senwes to revise
the process in order to ensure the
proper identification of all clients.
In this respect Senwes also has to
verify the correctness and validity
of the prescribed identification
documentation in accordance with
the act and the regulations relating
thereto. It also compels us to, inter
alia, keep certified copies of certain information on record.
Should Senwes not be in possession of certified copies of the
documents involved, no transactions may be done with the
client in terms of FICA. In order
to avoid such a situation, a spe-
cial project has been launched to
establish which clients’ documents
do not comply with the FICA
requirements and to rectify it by
requesting clients to provide us
with the outstanding documents.
Should Senwes do business
with clients with incomplete or
unverified information, it would
run a material risk of administrative fines. Over the past year, for
instance, administrative penalties
of R10 million were imposed on
two organisations whose KYC
information was incomplete or
lacking.
Clients will be approached by
letter, sms or telephonically or by
means of personal visits and your
co-operation is requested to enable
us to finalise the project during
the shortest possible time.
The gathering of information
Luc
ky
Win
ner
will be done by various divisions
and persons, which will include
the credit division, grain brokers,
central administration and contracted project team members,
who will be in possession of an
authorisation from Senwes. The
information required will differ
from client to client and only
outstanding information will be
requested.
We trust that you will understand that this action is necessary
for the management of a material
risk for Senwes and that it forms
part of Senwes' commitment to
improved compliance levels and
good corporate management.
The final date for the completion of the project is 31 October
2016, but the project team has
been instructed to finalise it as
soon as possible. Unfortunately
Senwes will not be able to conclude any transaction with any
person whose FICA verification is
incomplete, until such time as all
the required information has been
received.
Any enquiries may be directed
to the Senwes Secretariat and
Legal Division at (018) 4647118/464-7498.