According to the FIC, legal entities are vulnerable to being used for money laundering, as they can be used to disguise:
As an intermediary, you need to:
- Provide any additional information or documentation requested, for example, from an independent third party, if Sanlam’s risk assessment indicates a high level of risk
- Keep your eyes open for anything that looks suspicious and report it to the appropriate parties.
This snippet is part of a series. If you missed the previous instalments, read more here:
- Part 1: Demystifying PDD – one step at a time
- Part 2: Simplifying FIC Amendment Act requirements
- Part 3: When clients change their banking details, additional info may be requested
- Part 4: PDD requirements when your client is a minor
- Part 5: A higher level of diligence required for prominent individuals
- Part 6: Foreign prominent public officials and PDD
Please note: to reinforce the key messages, some elements may have been repeated.
For more on the FIC Amendment Act, click here.