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Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001)

Chapter 3 : Money Laundering, Financing of Terrorist and Related Activities and Financial Sanctions Control Measures

Part 1 : Customer due diligence

21. Identification of clients and other persons

 

(1) When an accountable institution engages with a prospective client to enter into a single transaction or to establish a business relationship, the institution must, in the course of concluding that single transaction or establishing that business relationship and in accordance with its Risk Management and Compliance Programme
(a) establish and verify the identity of the client;
(b) if the client is acting on behalf of another person, establish and verify—
(i) the identity of that other person; and
(ii) the client's authority to establish the business relationship or to conclude the single transaction on behalf of that other person; and
(c) if another person is acting on behalf of the client, establish and verify—
(i) the identity of that other person; and
(ii) that other person's authority to act on behalf of the client.

[Section 21(1) substituted by section 9 of the Financial Intelligence Centre Act, 2017 (Act No. 1 of 2017)]

 

(2) If an accountable institution had established a business relationship with a client before this Act took effect, the accountable institution may not conclude a transaction in the course of that business relationship, unless the accountable institution has taken the prescribed steps—
(a) to establish and verify the identity of the client;
(b) if another person acted on behalf of the client in establishing the business relationship, to establish and verify—
(i) the identity of that other person; and
(ii) that other person’s authority to act on behalf of the client;
(c) if the client acted on behalf of another person in establishing the business relationship, to establish and verify—
(i) the identity of that other person; and
(ii) the client’s authority to act on behalf of that other person; and
(d) to trace all accounts at that accountable institution that are involved in transactions concluded in the course of that business relationship.