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What are FICA and RICA?

Posted: 30 May 2018

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In the news and online, we often read about fraudulent activities such as identity theft. In order to protect individuals, companies and other legal entities, the government passed two Acts: - The Financial Intelligence Centre Act (FICA) and, - The Regulation of Interception of Communications and Provision of Communication Related Information Act (RICA). While most of us have gone through the process of FICA and RICA, it’s not always clear why they are necessary and what is required for either process. What is FICA? The Financial Intelligence Centre Act, or FICA, was enacted to fight crimes such as money laundering, tax evasion and other unlawful activities. FICA registration is a legal requirement for all reporting institutions listed in Schedules 1 and 3 of FICA (available here). If you or your company/entity appear on the list, you are required to register. Why should I register for FICA? If you do not comply with FICA, you stand the chance of falling victim to criminals who can use your account for fraud. If you want to find out more about FICA, and whether you are compliant or not, you can visit your bank. What documents do you need for FICA? - ID document (green barcoded ID or ID card) / Passport (foreign nationals) - Proof of address that is less than three months old (utility bill, store account, Telkom statement, DSTV account, municipal letter, etc.) - Copy of SARS document confirming tax number - Copy of bank statement confirming individual banking details (less than 3 months old) If you need to FICA a minor, non-resident individual, estate late, trust, company, non-resident company, close corporation, partnership account or unincorporated entities, you can view the documentation required here. What is RICA? The Regulation of Interception of Communications and Provision of Communication Related Information Act, or RICA, is part of the government’s crime prevention efforts. All SIM cards must be registered in accordance with RICA. Most of us will have gone through the RICA process when we bought a sim card, cell phone or a contract from a mobile service provider. What documents do you need for RICA? - ID document (green barcoded ID or ID card) / Passport (foreign nationals) - Proof of address that is less than three months old (utility bill, store account, Telkom statement, DSTV account, municipal letter etc.) - Completed RICA registration form While FICA and RICA registration may seem like a lot of trouble, these laws were created to protect you and your identity from criminal and fraudulent activities. Tip: Another way of protecting yourself, is to make sure the information on your credit report is accurate. If it isn’t, you need to dispute it – find out how to dispute information on your credit report here. To get your credit report, visit www.mycreditcheck.co.za today!
Remember: An informed individual is a protected individual!
**FICA and RICA applies to residence in South Africa.

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