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


Guidance Note 3

Guidance for Banks on Customer Identification and Verification and Related Matters



The term "bank" in this guidance note refers to institutions that conduct banking business, in other words accountable institutions referred to in:

Item 6 (A person who carries on the "business of a bank as defined in the Banks Act, 94 of 1990), or
Item 7 (A Mutual Bank as defined in the Mutual Banks Act, 124 of 1993),

which may be expected to be licensed as banks or mutual banks, respectively, and accountable institutions, which conduct similar activities, namely those referred to in:

Item 14 (A Postbank referred to in section 51 of the Postal Services Act 124 of 1998), or
Item 16 (The lthala Development Finance Corporation Limited)

of Schedule 1 to the FIC Act.


"The Centre" means the Financial Intelligence Centre established by section 2 of the FIC Act.


"Financial Intelligence Centre Act" (herein referred to as the FIC Act) refers to the Financial Intelligence Centre Act, 2001 (Act No 38 of 2001).


"Money Laundering Control Regulations" (herein referred to as "the Regulations") refers to the regulations made in terms of section 77 of FIC Act and promulgated in Government Notice 1595 published in Government Gazette No. 24176 of 20 December 2002.


"Money Laundering Control Exemptions" (herein referred to as "the Exemptions") refers to exemptions made under section 74 of FIC Act and promulgated in Government Notice 1596 published in Government Gazette No. 24176 of 20 December 2002.


"The Financial Action Task Force" ("FATF") is an inter-governmental body that engages in the development and promotion of national and international policies and standards to combat money laundering and terrorist financing. The FATF is both a policy-making and standard setting body. It was created in 1989 and works to generate the necessary political will to bring about legislative and regulatory reforms in these areas. Further information concerning the FATF is available at


The FATF Recommendations refers to the 40 Recommendations on combating money laundering plus 9 Special Recommendations on combating terror financing of the FATF that set out the basic framework to combat money laundering and terrorist financing. The FATF Recommendations are intended to be of universal application and have come to be accepted by organisations such as the World Bank and the International Monetary Fund to be the international standard to benchmark efforts to combat money laundering and terrorist financing. Since its creation the FATF has spearheaded the effort to adopt and implement measures designed to counter the use of the financial system by criminals. The FATF Recommendations can be accessed from


The Core Principles refer to the Basel Core Principles for Effective Banking Supervision which is the comprehensive set of twenty-five Core Principles that have been developed by the Basel Committee on Banking Supervision, a Committee of banking supervisory authorities which was established by the central bank Governors of the Group of Ten countries in 1975, as a basic reference for effective banking supervision. The Core Principles were designed to be applied by all countries in the supervision of the banks in their jurisdictions. The Core Principles can be accessed from


The Wolfsberg Principles refer to Global Anti Money Laundering Guidelines for Private Banks, which sets out global guidance for sound business conduct in international private banking, Correspondent Banks and Politically Exposed Persons. The principles can be accessed from


The United Nations List means the list of individuals and entities as issued by the United Nations 1267 Sanctions Committee. The updated UN list can be accessed from


This list is published in a Government Gazette of the Republic of SA from time to time by proclamation under section 25 of the Protection of Constitutional Democracy against Terrorist and Related Activities Act, 2004 (Act No. 33 of 2004). The current proclamation can be accessed from


Organs of State as defined under section 239 of the Constitution of the Republic of South Africa 1996 (Act 108 of 1999) means—

(a) any department of state or administration in the national, provincial or local sphere of government; or
(b) any other functionary or institution
(i) exercising a power or performing a function in terms of the Constitution or a provincial Constitution; or
(ii) exercising a public power or performing a public function in terms of any legislation,

but does not include a court or judicial officer.


Shell Banks refers to a bank incorporated in a jurisdiction in which it has no physical presence and which is unaffiliated with a regulated financial group.


Payable through accounts refers to correspondent accounts that are used directly by third parties to transact business on their own behalf.



Issued by the Director

Financial Intelligence Centre

14 July 2005