We held our first-ever Instagram Livestream Q&A on the 20th of June 2024. Thank you to all our viewers who joined and asked questions. This article contains all our answers to your questions. Follow thisisme_sa_official on Instagram and join us next week Wednesday on the 26th of June for our second live stream and Q&A.

1. I own a second-hand car dealership and need to be FICA compliant. What is the difference between KYC and Identity Verification? 

These two terms are sometimes used interchangeably, but there are differences. Know Your Customer (KYC) is a broad term that refers to all the checks done to ensure that a person is who they say they are and that the information they provide is accurate and correct.  

Identity Verification (IDV) is the process of specifically verifying personal identity, which in South Africa is most often done by cross-checking an individual’s ID number against the personal information stored at the South African Department of Home Affairs.  

IDV is typically part of the KYC process, but KYC often entails more than just verifying someone’s identity. KYC may also include checks such as screening a person for PEP and Sanction status, or running a credit check.  

2. How do I know if my business is a High-Value Goods Dealer (HVGD) in South Africa?  

A HVGD is classified as any business that sells single items for a price of R100,000 or over at the time of sale. This only applies to single items, so if multiple items are sold for over R100,000, but no single item is over R100,000, the business is not a HVGD.  

If your business fulfils these requirements and is a HVGD, you must register with the FIC and draw up a Risk Management and Compliance Program (RMCP). When a HVGD sells an item for R100,000 or more, that business must verify the identity of the individual and screen them for PEP and Sanction status. For more information, read our comprehensive guide here.

The deadline for this compliance is coming up on the 31st of July 2024. ThisIsMe offers the exact checks that HVGDs need to be compliant with the FIC. To schedule a demo to see how our services can empower you to be compliant with FICA, simply book a sales demo here. 

3. What is the difference between an RMCP and RCR? 

A Risk Management and Compliance Program is a comprehensive document that outlines what money laundering-related risks a company faces and what processes it has put in place to effectively and reasonably mitigate those risks.  

Properly developing an RMCP is a complex process that must be done with the correct professional assistance. We do not recommend relying upon the free RMCP templates that are available online, as the majority of these templates fail on audit. Failing an RMCP audit will cost your company time and money and should be avoided. 

We have a network of qualified professionals who can assist your company with the completion of its RMCP. We will gladly connect you with these professionals and assist you throughout your compliance journey. 

A Risk and Compliance Return (RCR) is “smaller” a digital form created by the FIC. By filling it out, your company demonstrates that it understands money laundering risks and is acting in accordance with its Risk Management and Compliance Program (RMCP). This form must be completed digitally and can be found on the FIC’s website here. 

4. What is the difference between the FIC and the FSCA?  

The Financial Intelligence Center (FIC) is South Africa’s financial intelligence unit and is responsible for setting country’s framework for anti-money laundering and countering the financing of terrorism and proliferation (AML/CFT). The FIC creates South Africa’s legislation, receives regulatory reports and transaction and other data from accountable institutions and other business, interprets this data, and then produces financial intelligence from this data for relevant authorities to use in their investigations and prosecutions. 

On the other hand, the Financial Sector Conduct Authority (FSCA), is primarily tasked with enforcing compliance with the FIC’s legislation. The FSCA supervises and enforces South Africa’s compliance with the FIC Act and in accordance with a Risk-Based Approach (RBA). 

In other words, the FIC is more of a lawyer, while the FSCA takes on a policeman-style role.