1:
The Financial intelligence Act, 2001 sets up a regulatory anti- money laundering regime which intended to break the cycle of organized criminal groups to benefit from illegitimate profits and activities. By doing this the act aims to maintain the integrity of the financial system. Apart from the regulatory regime the act also creates the Financial Intelligence Centre. The regulatory regime of the Financial Intelligence Act imposes’ Know your client”, record-keeping and reporting obligations on accountable institutions. It also requires accountable institutions to develop and implement internal rules to facilitate compliance with these obligations.
Legally banks and other financial institutions are required to verify the residential or physical addresses of their clients and to identify them. This is required by government in order to prevent money laundering and fraud, and to protect the customers, against identity theft. The role of the FIC is to collect, retain, compile and analyse all information disclosed to it. While the FIC does not itself investigate criminal activity, it provides relevant information to the investigating authorities, intelligence services and SARS. The KYC and reporting requirements relies on the cooperation of clients. While this may cause inconvenience in some circumstances, FICA compliance to prevent crime is in the best interest of Mr. Colin. This will also help Collin as he will know he is dealing with a reputable institution which follows procedure and is ethical. It also shows that the organization respects client confidentiality.
Question 2:
Property of the deceased
House R1 900 000
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