Strict legislation hinders the flow of business activities if the compliance therewith becomes a hurdle. When this happens, it promotes non-compliance and non-compliance in this area promotes criminal activities or simply makes fraud, corruption and bribery easier to commit.
Accountable institutions in terms of the Financial Intelligence Centre Act 38/2001 (FIC Act) are required to register with the Financial Intelligence Centre.
The Act regulates the type of identification required for each natural person or entity type.
A registration fee may be payable. As mentioned before, the FIC Act Amendment Bill will also impose stringent requirements.
The market is very big but not saturated.
DocFox is a company that recently started doing FIC verification and NameScan does screening. ThisIsMe and Lexis Nexis also provide these services.
If Fintechs focus in this area, they must ensure that not only the documents itself as required by the Act are asked, but also other requirements such as source of funds and PEP screening.
Durban, South Africa