Canada    FinTech Guide    Chapter 11    South Africa


11. Identification
South Africa  South Africa

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.



Legal Affairs


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.



Economic Conditions


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.



Miscellaneous


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.



Contributing Authors

Garlicke & Bousfield Inc

Brian Jennings
Durban, South Africa

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018