When buying or selling property in South Africa, you’ll quickly hear about FICA documents. They may feel like extra admin, but in truth, the Financial Intelligence Centre Act 38 of 2001 (“FICA“) plays a vital role in protecting the property market and you as the client. Attorneys cannot proceed with a property transfer without these documents, making them a non-negotiable part of every transaction.
What is FICA?
FICA was introduced to prevent money laundering, fraud, and the financing of terrorism. It requires financial and legal institutions, including banks and attorneys, to verify the identities and addresses of their clients. This is why, before any transfer begins, both buyers and sellers must submit:
- Proof of identity (ID book or passport);
- Proof of marriage (marriage certificate);
- Proof of SARS income tax number
- Proof of residence (utility bill or similar document, not older than 3 months);
- Proof of banking details.
Without these, the attorney is legally prohibited from proceeding with the transaction.
Why FICA Matters for Property
Property transactions involve large sums of money and are therefore vulnerable to abuse by criminals. By requiring FICA compliance, the system ensures that funds come from legitimate sources and that both parties are properly identified.
Common Issues with FICA are:
- Outdated Documents: Proof of residence older than 3 months is not acceptable.
- Mismatched Details: Names on utility bills that don’t match the ID can cause delays.
- Foreign Nationals: Non-citizens often require additional verification, such as immigration documents.
These issues often cause unnecessary delays – something attorneys can help prevent by advising clients early.
Beyond the Basics
What many people don’t realise is that attorneys don’t just collect FICA documents; they also conduct risk assessments. If a client’s circumstances appear unusual (for example, complex ownership structures or foreign funding), attorneys may request additional documents or explanations to comply with anti-money laundering regulations.
Final Word
Submitting correct FICA documents upfront saves time and avoids frustrating delays. Attorneys use these requirements to ensure a safe, legal, and transparent property Transaction.
Need guidance on FICA documents? NS Xulu Inc. will walk you through the process, ensuring your transfer stays on track from day one.
