As a valued client of Sanlam, we want to take a moment to explain a crucial aspect of our operations: Customer Due Diligence (CDD). This process, mandated by the Financial Intelligence Centre Act 38 of 2001 (FICA), is a cornerstone of our commitment to preventing financial crime and fostering a secure financial environment for everyone.
You might be wondering, “What exactly is Customer Due Diligence?” Simply put, it involves us taking reasonable steps to identify and verify the identities of our clients, understand the nature of our business relationship, and assess the potential money laundering and terrorist financing risks associated with it. This isn’t just a bureaucratic exercise; it’s a vital measure that helps to:
- Combat Money Laundering and Terrorist Financing:
By knowing our clients, we can better detect and prevent illicit funds from entering the financial system, thereby contributing to national and international security efforts. - Protect You and Your Assets:
CDD helps safeguard the integrity of the financial system, reducing the risk of fraud and other financial crimes that could ultimately harm you. - Maintain the Integrity of Our Services:
By adhering to FICA regulations, we ensure the long-term stability and trustworthiness of our institution, allowing us to continue providing you with reliable services.
As an accountable institution, our responsibilities under FICA regarding CDD include:
- Identifying and Verifying the Identify of your Business and it’s Beneficial Owners:
This involves collecting information both about your business and natural persons having a controlling stake in the business of 5% or more. Please note that this threshold was previously 25% but changed to 5% in August 2024 following updated regulatory requirements. - Conducting Ongoing Monitoring:
Our responsibility doesn’t end after the initial verification. We are required to continuously monitor our business relationship with you and update client details. - Keeping Your Information Secure:
We understand the sensitivity of the information you provide and are committed to maintaining its confidentiality and security in accordance with applicable laws.
We understand that providing this information might sometimes feel like an administrative burden. However, please know that these measures are in place to protect not only our institution but also you and the broader financial system. Your cooperation in providing accurate and up-to-date information is greatly appreciated and plays a vital role in our collective efforts to combat financial crime.
We are committed to making this process as smooth and efficient as possible. Should you have any questions about our CDD procedures or the information we require, please do not hesitate to contact us. We value your partnership and thank you for your understanding as we work together to build a safer financial future.
Author: Johan Prinsloo