XYZ ESTATES RISK MANAGEMENT AND … · XYZ ESTATES RISK MANAGEMENT AND COMPLIANCE PROGRAM Prepared...

XYZ ESTATES

RISK MANAGEMENT AND COMPLIANCE PROGRAM

Prepared by Miltons Matsemela Inc.

ref: Deon Welz/February 2018

1. DEFINITIONS

"FICA" means the Financial Intelligence Centre Act, No 38 of 2001, as amended from time

to time;

"FIC" means the Financial Intelligence Centre, a juristic person created under chapter 2 of

FICA;

"RMCP" means the Risk Management and Compliance Programme contained in this

document, which has been designed in response to our obligation under section 42

of FICA;

2. INTRODUCTION

2.1 As Estate Agents, we are an Accountable Institution and subject to the provisions of

FICA.

2.2 To comply with FICA, and its latest amendment, we are obliged to create a RMCP. The

purpose of this RMCP is to identify and assess the risk that our clients might, during their

relationship with us, be seeking to launder money or to finance terrorism. While it is

obvious that the risks of money-laundering are greater in our business, we cannot ignore

the possibility that a client of ours might be financing terrorism. We are obliged to be on

the lookout for both of these illegal practices. We are also obliged to report any

instances of this and any other suspicious activity.

2.3 Our obligations also extend to monitor, mitigate and manage the risk of our products or

services being utilized for these illegal practices.

2.4 This document seeks to set out how we intend to comply with these obligations, and

other related matters.

3. WHAT ARE OUR RISKS?

3.1 That a purchaser or tenant might be using money from an illicit source to purchase or

rent property, thereby laundering the money.

3.2 That a tenant might be using a rented property for a business that launders money or

finances terrorism.

3.3 That the owner of a property might be using income generated from the sale or rental of

the property to finance terrorism.

3.4 That an owner of a property or a purchaser or tenant might be concealing their identity to

avoid detection while they launder money or finance terrorism.

3.5 This list is not final. As and when additional risks become apparent, this list shall be

updated and expanded.

4. WHO MUST WE APPLY THESE RULES TO?

4.1 Proper FICA compliance procedures and our client due diligence procedures, in

accordance with this document, must be conducted in respect of all clients and

prospective clients, whenever we are approached by the client and it appears probable

that we will enter into a business relationship with the client or conduct a single

transaction with the client.


accordance with this document, must be applied and completed in respect of all such

clients before any contract is concluded or any money is paid or received by such a

client, or by a representative of the client.


accordance with this document, must also be implemented and applied in respect of

clients that we are currently concluding single transactions with and in respect of clients

that we have an existing business relationship with.

5. COMPLIANCE WITH SECTION 20 A - RELATIONSHIPS WITH ANONYMOUS

CLIENTS AND CLIENTS ACTING UNDER FALSE OR FICTITIOUS NAMES

Our company is prohibited by section 20A of FICA, from establishing a business relationship, or

concluding a single transaction, with an anonymous client or client with an apparent false or

fictitious name. Any employee who breaches this rule will be guilty of an offence and subject to

disciplinary action, both in terms of our internal disciplinary rules and in terms of the Financial

Intelligence Centre Act.

6. THE ESTABLISHMENT AND VERIFICATION OF THE IDENTITY OF PERSONS

To establish and verify the identity of all of our clients and our prospective clients, we are

obliged to utilize the questionnaires contained in the schedule to this document and the listed

procedures. These questionnaires are to be completed in full.

7. ONGOING DUE DILIGENCE

We are obliged to continue to monitor existing clients and to take note when the client behaves

in a manner inconsistent with our previous knowledge of the client. Such behaviour might well

require us to report the client. For the sake of example, circumstances in which this provision

might be relevant are the following:

7.1 If a landlord instructs us to remit rentals into the account of an unknown 3rd party without

a proper explanation.

7.2 If a tenant continues to rent either residential or commercial premises when you are

aware that their legitimate source of income has ceased to exist.

7.3 Any other unexplained change of behavior that raises suspicion.

Proper FICA compliance procedures and our client due diligence procedures, in accordance

with this document, must be implemented and applied in respect of existing clients with whom

we have a continuous business relationship, for example a landlord or a tenant, at least every

36 months, unless changing circumstances or events require such a due diligence investigation

and FICA verification at an earlier date.

8. ADDITIONAL DUE DILIGENCE MEASURES IN RESPECT OF LEGAL PERSONS,

TRUSTS AND PARTNERSHIPS

When dealing with legal persons, trusts and partnerships, we are obliged to implement the

additional due diligence measures and procedures as set out in the relevant questionnaires

contained in the schedule to this document. The questionnaires are to be completed in full.

9. COMPLEX OR UNUSUALLY LARGE TRANSACTIONS

In the event that we are asked to become party to or to facilitate any complex or unusually large

transaction, we must be especially vigilant about the possibility that the parties involved might

be attempting to launder money or finance terrorism. These transactions and the parties

involved must be properly identified and investigated and our findings and conclusions,

whatever they might be must be written down and retained on the file.

10. UNUSUAL PATTERNS OR TRANSACTIONS WHICH HAVE NO APPARENT

BUSINESS OR LAWFUL PURPOSE

It is our duty to remain on the alert for unusual patterns or transactions which have no apparent

business or lawful purpose. An example of this would be where a tenant rents commercial

premises and the business which he purports to conduct from the premises is clearly unable to

sustain the rent. Such transactions and the parties involved must be reported.

11. THE IDENTIFICATION OF CLIENTS AND BASIC DUE DILIGENCE

In carrying out our basic FICA verification and client due diligence investigations, we must utilize

the forms contained in the schedule to this document and the procedures listed therein.

When we engage with the prospective client to enter into a single transaction or to establish a

business relationship. We must, during the course of concluding that single transaction or

establishing that business relationship, but before any transaction is finalized and before any

money changes hands:

11.1 Establish and verify the identity of the client;

11.2 If the client is acting on behalf of another person, we must:

• establish and verify the identity of that other person; and

• establish and verify the client’s authority to act on behalf of that other person.

11.3 If another person is acting on behalf of the client, we must:

• establish and verify the identity of that other person; and

• establish and verify that other person’s authority to act on behalf of the client.

11.4 We must establish whether the transaction that will be performed in terms of the

business relationship are consistent with our knowledge of that client.

11.5 We must establish the source of funds that the prospective clients intend to use in

concluding the transaction/s.

This is the most basic level of due diligence and FICA compliance that is expected when dealing

with persons and transactions at the lowest risk level.

12. ADDITIONAL REQUIREMENTS WHEN DEALING WITH LEGAL PERSONS, TRUSTS

AND PARTNERSHIPS

12.1 If our client is a legal person, a trust or a partnership, we must establish:

• the nature of the client’s business;

• the ownership and control structure of the client;

• the identity of the beneficial owner of the client.

12.2 The identity of the beneficial owner of the client must be established by determining the

identity of each natural person who has a controlling ownership interest in the client. If

there is doubt as to who this might be, the identity of each natural person who exercises

de facto control of the company must be established. This person might be a CEO, a

director or manager.

12.3 The identity of the beneficial owner of the client must also be verified.

13. ADDITIONAL REQUIREMENTS WHEN DEALING WITH PARTNERSHIPS

13.1 Establish the name of the partnership.

13.2 Establish the identity of every partner, including silent partners.

13.2 Establish the identity of the person who exercises executive control over the partnership.

13.4 Establish the identity of the person who is authorised to represent or bind the

partnership.

13.5 Verify the identities of the persons so identified.

14. ADDITIONAL REQUIREMENTS WHEN DEALING WITH TRUSTS

14.1 Establish the identifying name and number of the trust.

14.2 Establish the address of the Master of the High Court where the trust is registered.

14.3 Establish the identity of the founder of the trust.

14.4 Establish the identity of each trustee and of any person who is authorized to represent or

bind the trust.

14.5 Establish the identity of each beneficiary referred to in the trust deed or other document

which created the trust.

14.6 If there are no named beneficiaries, establish how the beneficiaries of the trust are to be

determined.

14.7 Verify the information obtained about the trust and the identities of the natural persons

that have been so identified.

15. RETENTION OF RECORDS

15.1 By their very nature, the results of our FICA enquiries are privileged personal records

relating to our customers. As such they deserve the highest levels of protection.

15.2 No FICA records are to be removed from the file for any reason without the authority of

the FICA compliance officer and no such records to be made available to any third party

without the consent of the client to whom they relate, unless required by law.

15.3 FICA records are to be retained on the individual transaction file in our office and in our

archives where we keep our old files, for a period of 5 years. If a report is made, the

FICA records must be retained for a period of 5 years from the date of the report.

16 DUTY TO REPORT SUSPICIOUS AND UNUSUAL TRANSACTIONS

16.1 We all have a duty to report suspicious and unusual transactions which we know about,

or of which we ought reasonably to have known about. We can therefore not bury our

heads in the sand.

16.2 Our duty to report arises if we know or even if we just suspect:

• that one of the parties to the transaction will be using or receiving the proceeds of

unlawful activities; or

• that a property which is connected to an offence relating to money laundering or the

financing of terrorist and related activities will be changing hands; or

• if the transaction has no apparent business or lawful purpose; or

• the transaction is designed for the purposes of avoiding giving rise to a reporting duty

under FICA; or

• the conduct of the parties may be related to the evasion or attempted evasion of a

duty to pay any tax or duty or levy due to SARS or relates to money laundering or the

financing of terrorist or related activities.

16.3 Once we are aware of the suspicious or unusual transaction, this must be reported

immediately. You have a duty to approach our FICA Compliance Officer and to make a

full disclosure of the facts and circumstances giving rise to your belief that a report to the

FIC is required. Any documentation related to these facts and circumstances is also to

be brought to the attention of our FICA Compliance Officer.

16.4 You are not allowed to disclose any details about the suspicious or unusual transaction

or your report to anyone else, unless this is required in terms of the FICA, or for the

purposes of legal proceedings or in terms of an order of court. You are specifically not

entitled to disclose any details about the report to the person who is the subject of the

report. If by some accident, you are aware that another employee has made a report

about a suspicious or unusual transaction, your duty of confidentiality is the same as if

you had made the report yourself.

17. THE INABILITY TO CONDUCT DUE DILIGENCE AND THE TERMINATION OF

BUSINESS RELATIONSHIPS

17.1 If we are unable to comply with our FICA compliance and client due diligence obligations

in respect of any client, may not enter into a business relationship or conclude a single

transaction with the client. We may also not conclude a transaction during the business

relationship, or perform any act to give effect to a single transaction. Finally, we must

terminate our relationship with that client.

17.2 The termination of this relationship shall be effected by way of a written communication

from senior management advising the client that the business relationship has been

terminated as a result of our inability to conduct FICA compliance procedures and client

due diligence.

17.3 In the event that the inability to contact the client due diligence comes about as a result

of suspicious or unusual behaviour in suspicious or unusual circumstances, we are

obliged to report the client to the FIC.

18. FOREIGN PROMINENT PUBLIC OFFICIALS, DOMESTIC PROMINENT INFLUENTIAL

PERSONS AND THEIR FAMILY MEMBERS AND THEIR KNOWN CLOSE

ASSOCIATES

These categories of people must be given special treatment in terms of FICA. People falling

into this category are those listed in Schedule 1. If we are dealing with Foreign Prominent

Public Officials, or their family members or known close associates, these people are

automatically high risk and additional client due diligence steps must be taken before

establishing a business relationship or entering into a single transaction with such a person.

These enhanced steps are the following:

18.1 you will require senior management approval to establish the business relationship; and

18.2 you will need to establish the source of wealth of the client and his or her source of funds

to conclude the transaction; and

18.3 enhanced ongoing monitoring of the business relationship must be conducted.

In the event that your basic FICA verification and client due diligence investigations in respect of

a Domestic Prominent Influential Person and/or their family members and their known close

associates shows a higher risk, the same enhanced steps must be implemented.

19. DIFFERENT LEVELS OF CUSTOMER DUE DILIGENCE

19.1 When dealing with a client that is entering into a single transaction with a value of less

that R5 000-00, no customer due diligence is required. For all other clients we are

obliged to carry out our standard customer due diligence procedures.

19.2 It is important for us to be able to identify where it is necessary for us to conduct

enhanced due diligence methods for higher risk business relationships. Enhanced due

diligence procedures, are to be conducted when dealing with high-risk clients:

19.3 A high-risk client is any client –

19.3.1 who is a natural person, but is not a citizen or permanent resident of South

Africa; or

19.3.2 that has no operations or premises in South Africa; or

19.3.3 that cannot or will not produce the due diligence documents or information

required in terms of our standard due diligence procedures, and cannot provide a

proper explanation for this failure; or

19.3.4 who is a party to an unusual or complicated transaction; or

19.3.5 who is, in the discretion of the employee or compliance officer, suspect, whether

or not they fit into any of the categories listed above, as a result of:

(a) an unusual or inexplicable preference for dealing via correspondence or via

electronic media, as opposed to in person, particularly for the purposes of the

customer due diligence;

(b) a patent lack of concern or disregard for the costs involved; or

(c) deliberate evasiveness or vagueness when providing documentation or

information; or

(d) any other conduct or circumstances that, when viewed objectively, and when

considered in light of all of the relevant factors taken as a whole, should be

regarded with suspicion.

19.4 For all other clients, standard customer due diligence will be sufficient.

19.5 Standard customer due diligence procedures for the various categories of clients are as

outlined in the questionnaires contained in the schedules at the end of this RMCP.

19.6 Where enhanced due diligence procedures are required, these shall be designed on an

ad hoc basis, in consultation with the Compliance Officer and the highest levels of

management, with regard to the risk that they are intended to mitigate, or the suspicious

or unusual behaviour they are required to explain.

20. CO-OPERATION WITH OTHER ACCOUNTABLE INSTITUTIONS

20.1 If we have a client in common with another Accountable Institution, such as a bank or a

conveyancing attorney (a Secondary Accountable Institution); and

20.2 that client in common is in respect of the same transaction, and

20.3 the Secondary Accountable Institution agrees to subject, or has already subjected the

Client to customer due diligence procedures in accordance with that Secondary

Accountable Institution's own RMCP; and

20.4 the Secondary Accountable Institution agrees to furnish us with:

(i) a letter to the effect that it has satisfied itself as to the identity and other

prescribed particulars of the Client in compliance with FICA, and

(ii) copies of the documents and / or records of the information relied upon to carry

out the Secondary Accountable Institution's customer due diligence procedures

in respect of the Client,

then we may, instead of applying our own customer due diligence, rely on the letter and

documents provided by the Secondary Accountable Institution, and thus be regarded as

having complied with FICA and the RMCP.

20.5 If the letter from the Secondary Accountable Institution does not cover all the information

that would have been required in terms of our RMCP, we must supplement the

information in the letter by means of our own customer due diligence.

20.6 The term "Secondary Accountable Institution" shall be read as including analogous

Accountable Institutions based outside South Africa provided that they are situated in

other Financial Action Task Force Member States.

21. HOW DO WE GO ABOUT MAKING REPORTS

Our reports are made on-line directly to the FIC. These on-line reports are to be made by the

FICA Compliance Officer.

22. THE IMPLEMENTATION OF THIS RMCP

All staff members are to be made aware of the existence of this RMCP and each staff member

shall receive either hardcopy or a digital copy. Each staff member must sign the declaration

contained in schedule 2 confirming that they have read the RMCP and furnishing the

undertaking to enforce its terms when dealing with all clients.

23. PARAGRAPHS UNDER SECTION 42(2) THAT ARE NOT APPLICABLE TO OUR

COMPANY

Paragraph (q), may be inapplicable if we have no branch offices, subsidiaries or other

operations in foreign countries.

24. APPROVAL OF RMCP BY THE HIGHEST LEVEL OF AUTHORITY IN THE COMPANY

This RMCP, and all amendments hereto, shall be approved by our board of directors.

25. APPOINTMENT OF FICA COMPLIANCE OFFICER

25.1 Until further notice, our FICA compliance officer shall be:

_______________________________

25.2 It is the duty of our FICA compliance officer:

• to ensure that our registration with the FIC is and remains up-to-date;

• to implement the terms of this RMCP at our main office and any other branches that we

might operate from;

• to provide ongoing training to employees to enable them to comply with FICA and the

RMCP;

• in collaboration with management, to appoint a suitable person at any branch to ensure

that the terms of this RCMP are implemented at branch level; and

• to make reports.

26. OFFENCES AND PENALTIES

Failure to comply with this RMCP and/or the Financial Intelligence Centre Act is an offence

punishable by an internal sanction of this company and by harsh fines and prison sentences in

terms of the Act. These fines can amount to R50 million, and the prison sentences can last for

up to 5 years. Non-compliance is not an option.

27. REASSESSMENT OF RISK

This RMCP shall be updated at intervals of no more than five years. This shall however not

detract from the duty of management to update and amend this RMCP as and when additional

risks, or risk management steps are identified.

THIS RISK MAMAGEMENT AND COMPLIANCE PROGRAMME HAS BEEN APPROVED FOR

USE AT XYZ ESTATES BY:

NAME DESIGNATION SIGNATURE

______________________ ______________________ ________________________

______________________ ______________________ ________________________

______________________ ______________________ ________________________

SCHEDULE 1

Page 1

DOMESTIC PROMINENT INFLUENTIAL PERSONS

A domestic prominent influential person is an individual who holds, including in an acting

position for a period exceeding six months, or has held at any time in the preceding 12 months,

in the Republic—

(a) a prominent public function including that of—

(i) the President or Deputy President;

(ii) a government minister or deputy minister;

(iii) the Premier of a province;

(iv) a member of the Executive Council of a province;

(iv) an executive mayor of a municipality elected in terms of the Local Government:

Municipal Structures Act, 1998 (Act No. 117 of 1998);

(v) a leader of a political party registered in terms of the Electoral Commission Act,

1996 (Act No. 51 of 1996);

(vi) a member of a royal family or senior traditional leader as defined in the

Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of

2003);

(vii) the head, accounting officer or chief financial officer of a national or provincial

department or government component, as defined in section 1 of the Public

Service Act, 1994 (Proclamation No. 103 of 1994);

(ix) the municipal manager of a municipality appointed in terms of section 54A of the

Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), or a chief

financial officer designated in terms of section 80(2) of the Municipal Finance

Management Act, 2003 (Act No. 56 of 2003);

(x) the chairperson of the controlling body, the chief executive officer, or a natural

person who is the accounting authority, the chief financial officer or the chief

investment officer of a public entity listed in Schedule 2 or 3 to the Public Finance

Management Act, 1999 (Act No. 1 of 1999); or

(xi) the chairperson of the controlling body, chief executive officer, chief financial

officer or chief investment officer of a municipal entity as defined in section 1 of

the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);

(xii) a constitutional court judge or any other judge as defined in section 1 of the

Judges’ Remuneration and Conditions of Employment Act, 2001 (Act No. 47 of

2001);

(xiii) an ambassador or high commissioner or other senior representative of a foreign

government based in the Republic;

(xiv) an officer of the South African National Defence Force above the rank of major-

general;

SCHEDULE 1

Page 2

(b) the position of—

(i) chairperson of the board of directors;

(ii) chairperson of the audit committee;

(iii) executive officer; or

(iv) chief financial officer,

of a company, as defined in the Companies Act, 2008 (Act No. 71 of 2008), if the

company provides goods or services to an organ of state and the annual transactional

value of the goods or services or both exceeds an amount determined by the Minister by

notice in the Gazette; or

(c) the position of head, or other executive directly accountable to that head, of an

international organisation based in the Republic.

FOREIGN PROMINENT PUBLIC OFFICIALS

A foreign prominent public official is an individual who holds, or has held at any time in the

preceding 12 months, in any foreign country a prominent public function including that of a—

(a) Head of State or head of a country or government;

(b) member of a foreign royal family;

(c) government minister or equivalent senior politician or leader of a political party;

(d) senior judicial official;

(e) senior executive of a state owned corporation; or

(f) high-ranking member of the military.

IMMEDIATE FAMILY MEMBERS

Immediate family members of Domestic Prominent Influential Persons and Foreign Prominent

Public Officials include, but are not limited to:

(a) their spouse, civil partner or life partner;

(b) their previous spouse, civil partner or life partner;

(c) children and step-children and their spouse, civil partner or life partner;

(d) their parents; and

(e) siblings or step-siblings and their spouse, civil partner or life partner.

SCHEDULE 2

ACKNOWLEDGEMENT TO BE SIGNED BY ALL EMPLOYEES

I, ______________________________________________________ (FULL NAME), hereby

declare the following –

a) I have read the contents of this RMCP, which has been distributed or otherwise made

available to me, and I have also attended the necessary training workshops offered by

XYZ ESTATES in this regard; and

b) I acknowledge that to the extent that I do not understand any of my duties under the

RMCP, I have contacted the FICA Compliance Officer for clarification; and

c) I undertake to observe strictly and diligently all my duties imposed by FICA and the

RMCP, fully understanding that my failure to do so –

i. will potentially expose XYZ ESTATES to unacceptable risk, as well as financial

and reputational risk from the penalties that may be levied by the FIC against the

Business for any instances of non-compliance with FICA and the RMCP; and

ii. is a criminal offence in terms of FICA, and constitutes serious misconduct in

terms of the Business' disciplinary code.

FOR THE EMPLOYEE

SIGNATURE

FULL NAME

RSA IDENTITY OR FOREIGN

PASSPORT NO.

DESIGNATION

DATE OF SIGNATURE

SCHEDULE 3

PAGE 1

XYZ ESTATES QUESTIONNAIRE FOR NATURAL PERSONS 1. What is your full name and SA Identity or foreign passport number (ie the person completing this

Questionnaire)? (Your SA ID or foreign passport must be inspected by us and a copy will be required from you)

2. Are you a South African citizen / permanent resident? __________________________________________________________________________

3. What is the address of your main place of residence? (A document less than 2 months old proving this main place of residence will be required from you)*

4. What is your telephone number and email address? _________________________________________________________________________

5. Do you have a South African income tax number issued by SARS? If so please furnish it: _________________________________________________________________________

6. If you are dealing with XYZ ESTATES on behalf of another person (ie a Principal), what is the Principal's full name and SA Identity or foreign passport number?

(Their SA ID or foreign passport must be inspected by us and a copy will be required from you. If

the original document is not available for inspection, a certified copy must be provided.)

7. If you are dealing with XYZ ESTATES on behalf of another person are they a South African citizen / permanent resident? __________________________________________________________________________

8. If you are dealing with XYZ ESTATES on behalf of another person what is the address of their main place of residence? __________________________________________________________________________ (A document less than 2 month old proving this main place of residence will be required from you)*

9. If you are dealing with XYZ ESTATES on behalf of another person what is their telephone number and email address: ___________________________________________________________________________

10. If you are dealing with XYZ ESTATES on behalf of another person, do they have a South African

income tax number issued by SARS? If so please furnish it:

___________________________________________________________________________

SCHEDULE 3

PAGE 2

11. If you are dealing with XYZ ESTATES on behalf of another person, please indicate your authority to

do so (ie authorisation letter, power of attorney, or a similar instrument) and provide us with a copy of such a document.

12. If, following your completion of this Questionnaire, someone else will deal with XYZ ESTATES on your behalf (ie a Representative), what is that Representative's full name and SA Identity or foreign passport number?

13. What is the source of that Representative's authority to deal with XYZ ESTATES on your behalf (ie authorisation letter, power of attorney, or a similar instrument)? If the authority is in writing, provide us with a copy of such a document.

14. Please describe the type of service you seek from XYZ ESTATES, and the purpose for which that service is sought. I wish to sell a property I wish to purchase a property I wish to let out a property I wish to rent a property Other:

15. How will any payments due to XYZ ESTATES, or the other party to the prospective Business

Relationship, be financed?

16. Will any of the payments referred to in the previous question involve a payment by you or your Representative of R25 000 or more in cash (i.e. paper money, coins or traveller's cheques)? YES / NO

17. Do you now occupy, or have you in the past 12 months occupied, any of the following positions in any country other than South Africa? If "yes", please indicate the position that you occupy/ied.

• Head of state • Member of the royal family • Cabinet member • Senior member of a political party

SCHEDULE 3

PAGE 3

• Senior judicial officer • Senior executive of a state-owned entity • High rank in the military

18. Do you now occupy, or have you in the past 12 months occupied, any of the following positions in South Africa? If "yes", please indicate that position that you occupy/ied.

• President or deputy president of South Africa • Cabinet minister or deputy minister • Premier of a province • MEC of a province • Mayor of a municipality • Leader of a political party • Member of a royal family • Senior traditional leader • Head, accounting officer or CFO of a national or provincial department • Manager or CFO of a municipality • Chairperson, CEO, accounting authority, CFO or chief investment officer of a public entity • Judge • Ambassador, high commissioner or other senior representative of a foreign country

based in South Africa • Chairperson of board of directors, chairperson of audit committee, executive officer or

CFO of a company doing more than [INSERT AMOUNT ONCE GAZETTED]'s worth of business with the government.

19. Are you a family member or a close associate of one of the categories of people mentioned in the previous 2 questions? If so please name such person and indicate the position they occupied. __________________________________________________________________________

20. If you responded "yes" to any of the previous 3 questions, please indicate your source of wealth?

* Proof of your residential address can be furnished by way of a document emailed to you. In that

case we will need to see the original email as it appeared in your inbox, and the attachment, (if any). That email and the attachment must then be emailed to us so that we can print a copy. SIGNED AND DATED ON _________________________________________ (date)

__________________________________________ CLIENT’S SIGNATURE HERE

SCHEDULE 3

PAGE 4

FOR OFFICE USE ONLY

FULL NAME OF EMPLOYEE ADMINISTERING QUESTIONNAIRE

SIGNATURE

DATE

XYZ ESTATES CHECK LIST: COPY OF DOCUMENT/S PROVING IDENTITY PROVIDED: YES / NO COPY OF DOCUMENT/S PROVING ADDRESS PROVIDED: YES / NO COPY OF DOCUMENT PROVING AUTHORITY PROVIDED: YES / NO / Not Applicable COPY OF DOCUMENT DELEGATING AUTHORITY PROVIDED: YES / NO / Not Applicable IS THE CLIENT A VIP IN TERMS OF FICA COMPLIANCE: YES / NO IS THERE ANYTHING SUSPICIOUS OR UNUSUAL TO NOTE: YES / NO IS THE PROPOSED TRANSACTION CONSISTANT WITH OUR KNOWLEDGE OF THE CLIENT YES / NO LIST OF OUTSTANDING REQUIREMENTS: _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

SCHEDULE 4

PAGE 1

XYZ ESTATES QUESTIONNAIRE FOR NATURAL PERSONS ACTING ON BEHALF OF COMPANIES AND CLOSE CORPORATIONS 1. What is the company or close corporation's name and registration number?

[Note: The Client is not the person filling in the form, but the company or close corporation on behalf of which the form is being completed.]

(Unless the company is listed on a stock exchange, documentary proof of the existence of the company or CC will be required)

2. Does the company or close corporation have a presence in South Africa (i.e. assets, operations or business premises)? If "yes", please provide details.

3. If the company is a listed public company, please indicate the stock exchange on which it is listed. ________________________________________________________________________

4. What is the SARS income tax number of the company or close corporation? ________________________________________________________________________

5. Is the company or close corporation registered for VAT? If so what is the VAT registration no? ________________________________________________________________________

6. What is the company or close corporations registered address?

_________________________________________________________________________

7. What is your full name and SA Identity or foreign passport number? (ie the person completing this Questionnaire on behalf of the company or close corporation)? ________________________________________________________________________ (Your SA ID or foreign passport must be inspected by XYZ ESTATES and a copy will be required from you)

8. What is the address of your main place of residence? ________________________________________________________________________ (A document less than 2 months old proving this main place of residence will be required from you)*

SCHEDULE 4

PAGE 2


10. What is the source of your authority to complete this Questionnaire and deal with XYZ ESTATES on the company or close corporation's behalf (ie authorisation letter, power of attorney, or similar instrument)?

(A copy of this document giving such authority will be required)

11. Please describe the type of service that the company or close corporation seeks from XYZ ESTATES, and also the purpose for which that service is sought. We wish to sell a property We wish to purchase a property We wish to let out a property We wish to rent a property Other:

12. How will any payments due to XYZ ESTATES, or the other party to the prospective Business Relationship, be financed?

13. Will any of the payments referred to in the previous question involve a payment by the company or close corporation, or by its Representative, of R25 000 or more in cash (ie paper money, coins or traveller's cheques)? YES / NO

14. Please describe the company or close corporation's business (ie what industry it is in, what

products / services it sells etc).

SCHEDULE 4

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15. What is the company or close corporation's ownership and control structure? [Note: This question is about whether the Client is part of a fairly simple ownership structure in terms of which its assets are directly owned or controlled by an easily determinable number of natural persons (which will almost always be the case for a close corporation), or whether the Client is part of a more complex structure, in terms of which it is not as easy to determine the natural persons who directly own and control the Client's assets.]

16. Who are the ultimate beneficial owners of the company or close corporation? Full names and SA identity numbers / foreign passport numbers are required and a copy of such document proving identity will be required for our file.

METHOD 1

• Names of ultimate natural persons who individually or collectively own a majority (25%) of the company's shares or close corporation's members' interests

OR METHOD 2

• Names of ultimate natural persons who individually or collectively control the company or close corporation (ie have a material influence on the company or close corporation's operations)

OR METHOD 3

• Names of company or close corporation's executive managers

[Note: For a close corporation, the ultimate beneficial owners are the members of the close corporation who, individually or acting together, own 25% of the members' interests, and who are almost always natural persons. For a company, the ultimate beneficial owners or controllers are the natural persons who, individually or acting together, ultimately own 25% or more of the shares of the company, or otherwise control the company (for instance through a shareholders agreement). For example, if Company A (a Client of the Business) is 25% owned by Company B, and Company B is in turn 100% owned by John Smith, then John Smith is the ultimate beneficial owner of Company A, even though he is not the legal owner of the 25% stake in Company A.

Please fill in this answer based on the available information and considerations of practicality, choosing the most suitable of the 3 given methods of identifying the natural persons who benefit from the assets and income of the company.] (A copy of a SA ID or foreign passport must be provided in respect of each of these beneficial owners)

SCHEDULE 4

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17. What is the address of the main place of residence of each of the beneficial owners of the company or close corporation?

(A document less than 2 months old proving this main place of residence will be required from each one of these beneficial owners)*

18. What is the telephone number and email address of each of these beneficial owners?

_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________


case we will need to see the original email as it appeared in your inbox, and the attachment, (if

any). That email and the attachment must then be emailed to us so that we can print a copy.

SIGNED AND DATED ON _________________________________________ (date)

__________________________________________

CLIENT’S SIGNATURE HERE

SCHEDULE 4

PAGE 5

FOR OFFICE USE ONLY


SIGNATURE

DATE

XYZ ESTATES CHECK LIST:

COPY OF DOCUMENT/S PROVING REGISTRATION PROVIDED: YES / NO COPY OF DOCUMENT/S PROVING IDENTITY PROVIDED: YES / NO COPY OF DOCUMENT/S PROVING ADDRESS PROVIDED: YES / NO COPY OF DOCUMENT PROVING AUTHORITY PROVIDED: YES / NO IS THE CLIENT A VIP IN TERMS OF FICA COMPLIANCE: YES / NO IS THERE ANYTHING SUSPICIOUS OR UNUSUAL TO NOTE YES / NO IS THE PROPOSED TRANSACTION CONSISTANT WITH OUR KNOWLEDGE OF THE CLIENT YES / NO LIST OF OUTSTANDING REQUIREMENTS: _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

SCHEDULE 5

PAGE 1

XYZ ESTATES QUESTIONNAIRE FOR NATURAL PERSONS ACTING ON BEHALF OF PARTNERSHIPS 1. What is the identifying name of the partnership (i.e. the trading name or name by which the

partnership is commonly known)?

2. Does the partnership have a presence in South Africa (i.e assets, operations or business premises)? If "yes", please provide details.

3. What is your full name and SA Identity or foreign passport number? (ie the person completing this Questionnaire on behalf of the Partnership)? ________________________________________________________________________ (Your SA ID or foreign passport must be inspected by XYZ ESTATES and a copy will be required from you)



6. What is the source of your authority to complete this Questionnaire and deal with XYZ ESTATES on behalf of the partnership (ie authorisation letter, power of attorney or similar instrument)? (A copy of this document giving such authority will be required)

7. Please describe the type of service that the partnership seeks from XYZ ESTATES, and also the purpose for which that service is sought. We wish to sell a property We wish to purchase a property We wish to let out a property We wish to rent a property Other:

SCHEDULE 5

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8. How will any payments due to XYZ ESTATES, or the other party to the prospective Business

Relationship, be financed?

9. Will any of the payments referred to in the previous question involve a payment by the partnership or its Representative of R25 000 or more in cash (i.e. paper money, coins or traveller's cheques)? YES / NO

10. Please describe the partnership's business (i.e. what industry it is in, what products / services it sells etc)

11. If the partnership is a professional partnership (ie all the partners are public accountants or auditors, attorneys, pharmacists, medical doctors or other professionals, engineers, architects or engineers), then who are the executive partners that control the day-to-day operations of the partnership? Full names and SA identity numbers / foreign passport numbers are required and a copy of such document proving identity will be required for our file.

12. What is the partnership's ownership and control structure (are the partners all natural persons, or companies, or a mixture of the two)?

13. What are the names of the partners (including silent partners and partners en commandite, i.e. partners that do not necessarily involve themselves in the day-to-day running of the partnership, and who are not known to the general public as partners in the partnership)? Full names and SA identity numbers / foreign passport numbers are required and a copy of such document proving identity will be required for our file.

SCHEDULE 5

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14. What is the address of the main place of residence of each of the partners?

(A document less than 2 months old proving this main place of residence will be required from each one of these partners)*

15. What is the telephone number and email address of each of these partners?

16. Is the partnership registered for income tax or VAT with SARS? If so furnish us with the relevant registration numbers. ________________________________________________________________________ ________________________________________________________________________


case we will need to see the original email as it appeared in your inbox, and the attachment, (if

any). That email and the attachment must then be emailed to us so that we can print a copy.

SIGNED AND DATED ON _________________________________________ (date)

__________________________________________


SCHEDULE 5

PAGE 4

FOR OFFICE USE ONLY


SIGNATURE

DATE


COPY OF DOCUMENT/S PROVING IDENTITY PROVIDED: YES / NO COPY OF DOCUMENT/S PROVING ADDRESS PROVIDED: YES / NO COPY OF DOCUMENT PROVING AUTHORITY PROVIDED: YES / NO IS THE CLIENT A VIP IN TERMS OF FICA COMPLIANCE: YES / NO IS THERE ANYTHING SUSPICIOUS OR UNUSUAL TO NOTE YES / NO IS THE PROPOSED TRANSACTION CONSISTANT WITH OUR KNOWLEDGE OF THE CLIENT YES / NO LIST OF OUTSTANDING REQUIREMENTS: _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

SCHEDULE 6

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XYZ ESTATES QUESTIONNAIRE FOR NATURAL PERSONS ACTING ON BEHALF OF TRUSTS

1. What is the name and Master's reference number of the trust?

2. Does the trust have a presence in South Africa (i.e. assets, operations or business premises)? If "yes", please provide details.

3. What is your full name and SA Identity or foreign passport number? (ie the person completing this Questionnaire and dealing with XYZ ESTATES on behalf of the trust)? (Your SA ID or foreign passport must be inspected by XYZ ESTATES and a copy will be required from you)



6. What is the source of your authority to complete this Questionnaire and deal with XYZ ESTATES on behalf of the trust (ie trust resolution, authorisation letter or similar instrument)? (A copy of this document giving such authority will be required)

7. Please describe the type of service that the trust seeks from XYZ ESTATES, and also the purpose for which that service is sought. We wish to sell a property We wish to purchase a property We wish to let out a property We wish to rent a property Other:

SCHEDULE 6

PAGE 2

8. How will any payments due to XYZ ESTATES, or the other party to the prospective Business Relationship, be financed?

9. Will any of the payments referred to in the previous question involve a payment by the trust or its Representative of R25 000 or more in cash (i.e. paper money, coins or traveller's cheques)? YES / NO

10. Please describe the trust's purpose or business (i.e. why the trust was created or what industry it is in, what products / services it sells etc).

11. Which Master of the High Court administers the trust?

________________________________________________________________________

12. Is the Trust registered for income tax or VAT with SARS? If so furnish us with the relevant registration numbers. ________________________________________________________________________ ________________________________________________________________________

13. What is the full name of the person who created the trust (the “Donor”)? Full names and SA

identity number / foreign passport number is required and a copy of such document proving

identity will be required for our file.

14. What is the address of the main place of residence of the Donor?

(A document less than 2 months old proving this main place of residence will be required from to Donor)*

SCHEDULE 6

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15. What are the names of the Trustees? Full names and SA identity numbers / foreign passport

numbers are required and a copy of such document proving identity will be required for our file.

16. What is the address of the main place of residence of each of the Trustees?

(A document less than 2 months old proving this main place of residence will be required from each one of these Trustees)*

17. Who are the named beneficiaries of the trust? Full names and SA identity numbers / foreign

passport numbers are required and a copy of such document proving identity will be required for

our file.

OR

If there are no named beneficiaries, how are the beneficiaries determined?

SCHEDULE 6

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18. What is the address of the main place of residence of each of the beneficiaries?

(A document less than 2 months old proving this main place of residence will be required from each one of these beneficiaries) *

* Proof of your residential address can be furnished by way of a document emailed to you. In that case we will need to see the original email as it appeared in your inbox, and the attachment, (if any). That email and the attachment must then be emailed to us so that we can print a copy. SIGNED AND DATED ON _________________________________________ (date)

__________________________________________


SCHEDULE 6

PAGE 5

FOR OFFICE USE ONLY


SIGNATURE

DATE


COPY OF DOCUMENT/S PROVING IDENTITY PROVIDED: YES / NO COPY OF DOCUMENT/S PROVING ADDRESS PROVIDED: YES / NO COPY OF DOCUMENT PROVING AUTHORITY PROVIDED: YES / NO IS THE CLIENT A VIP IN TERMS OF FICA COMPLIANCE: YES / NO IS THERE ANYTHING SUSPICIOUS OR UNUSUAL TO NOTE YES / NO IS THE PROPOSED TRANSACTION CONSISTANT WITH OUR KNOWLEDGE OF THE CLIENT YES / NO LIST OF OUTSTANDING REQUIREMENTS: _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

XYZ ESTATES RISK MANAGEMENT AND … · XYZ ESTATES RISK MANAGEMENT AND COMPLIANCE PROGRAM Prepared...

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