If you've bought or sold a property in South Africa in the past few years, you've encountered FICA. Your conveyancing attorney would have asked for a certified copy of your ID, proof of address, and possibly other documents before they could proceed. Here's what FICA is, why it applies, and exactly what you need to provide.
What Is FICA?
FICA stands for the Financial Intelligence Centre Act. It's South African legislation that requires certain "accountable institutions" - including attorneys, banks, and estate agents - to verify the identity and address of their clients before conducting transactions above specified thresholds.
The purpose is to prevent money laundering and the financing of criminal activities through property transactions. Property is a classic vehicle for moving and concealing large amounts of money, so the sector is heavily regulated.
Who Must Comply?
Both the buyer and the seller must provide FICA documents. The following parties in a property transaction must collect and verify FICA documents from their clients:
- The transferring conveyancer
- The bond registration attorneys
- The bond cancellation attorneys
- The estate agent (if one is involved)
- The bank
You may be asked for the same documents multiple times by different parties. This is normal.
What Documents Do You Need?
For Individual Buyers and Sellers
Identity verification:
- South African citizens: Certified copy of your green barcoded ID book or smart ID card
- Foreign nationals: Certified copy of your valid passport
Address verification (one of the following, not older than three months):
- A utility bill (electricity, water, rates) in your name
- A bank statement
- A lease agreement
- A certificate from a municipality
For Companies
- Certified copy of CIPC registration documents
- Certified copies of founding documents (memorandum of incorporation or articles of association)
- FICA documents for all directors
- Resolution authorising the transaction
For Trusts
- Certified copy of the trust deed
- Letters of authority from the Master of the High Court
- FICA documents for all trustees
- Resolution authorising the transaction
For Close Corporations
- Certified copy of the CK1 founding statement
- FICA documents for all members
Certification Requirements
Copies of ID documents must be certified. Certification means a commissioner of oaths confirms that the copy is a true copy of the original.
Who can certify:
- A commissioner of oaths (police officer, justice of the peace, notary public, attorney)
- Most banks have in-branch certification services
- South African Post Office provides certification services
Validity: FICA documents must be recent. Address documents must be less than three months old. ID documents don't expire, but attorneys may request a recent re-certification if your existing certification is old.
Tips for Smooth FICA Compliance
- Get your documents ready before you sign an OTP - this is when the clock starts
- Always get multiple certified copies at once (you may need them for several parties)
- Ensure your address documents are in your own name (not a spouse's or landlord's)
- If you've recently moved, your utilities may still be in the previous resident's name - use a bank statement instead