Anti Money Laundering - KYC

Do you know your customer? It’s the law

The long-term consequences of illegal financial activity such as money laundering pose a daily threat to South African businesses. In response to an increase in this kind of crime, the Financial Intelligence Centre Act (FICA) has been amended to tackle illegal financial activities such as illicit financial flows, terrorism financing and tax evasion. This includes a number of control measures aimed at facilitating the investigation of money laundering, including requiring accountable institutions such as financial service providers to put in place anti-money laundering systems.

This includes the requirement to “Know Your Customer” (KYC) by establishing and verifying the identity of all clients prior to establishing a business relationship or concluding a transaction. Along with exposing your clients and business to potential harm, non-compliance with this requirement can result in heavy financial penalties.

Need help ensuring protection and compliance?

Lexis KYC ensures simple day-to-day customer identification requirements, all in one place, and puts enhanced due diligence at your fingertips, with access to:

  • Sanctions and Watchlists
  • Political exposure reports (PEP)
  • Adverse Media

All securely stored and ready for auditing. Lexis KYC complements your know-your-customer process by simpifying the responsibilty of client identification.

Related Articles

  • Experian data breach highlights need for stringent KYC
    The recent massive data breach at credit bureau Experian, which left 24 million people and nearly 800,000 businesses potentially exposed to online fraudsters, has highlighted the vigilance required of all staff who have access to company finances, accounts and customer data
  • FinCEN leak highlights need for proactive KYC in AML processes
    Financial sector due diligence and compliance with anti-money laundering regulations are back in the spotlight with the release of the FinCEN files in September 2020 – the latest in a string of leaks over the past five years that have exposed secret deals, money laundering and financial crime.
  • Make KYC verification a vital part of your AML processes
    Non-compliance with anti-money laundering (AML) regulations can result in heavy financial penalties and could expose your clients and business to potential harm, with Financial Intelligence Centre Act (FICA) fines of up to R10 million in your personal capacity and up to R50 million as a company.

Speak to our experts

Disclaimer: By submitting this form, you are providing consent for LexisNexis South Africa to contact you in your professional capacity with information about our other products, services and events that we believe may be of interest. You can learn more about how we handle your personal data and your rights by reviewing our Privacy Policy