KYC requirements

As part of the Government’s efforts to combat and prevent illegal financial activities, the Financial Intelligence Act and Prevention of Organized Crime Act were enacted. These laws introduced measures to combat organized crime, prevent money laundering and to combat terrorist funding.

Money laundering is cleansing of dirty money from illegitimate activities with the intention of hiding its source and rendering it in legally usable form. Money laundering is an evil that cuts into the finances of the country / government, depletes revenues and / or paralyses infrastructure development. It damages availability of valuable resources needed for primary healthcare, education and installation of socio-economic safeguards.

The Prevention of Organised Crime Act 29 of 2004 imposes obligations on firms and individuals to report suspicions of money laundering or terrorist financing.

Laws require the Bank to identify borrowers, and ensure that finance it advances is used for legitimate purposes. This is known as Know-Your-Customer (KYC). KYC includes the duties to identify and verify customers, and keep records of the verified documents and other details.

If KYC requirements are not met applications for finance may be delayed until the requirements are met, or the application may be declined.

Guide to DBN KYC requirements

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Download a guide to KYC requirements here...