Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001)

Directives

Directive for conduct within the national payment system in respect of the Financial Action Task Force Recommendations for electronic funds transfers - Effective 15 August 2022

Directive No. 1 of 2022

4. Directive
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4.1 An ordering financial institution must include, subject to paragraphs 4.5 to 4.11 below, the following information concerning the originator of a qualifying electronic funds transfer in the funds transfers:
4.1.1 the name of the originator;
4.1.2 originator account number (if the transaction is processed from an account); and
4.1.3 the originator’s:
4.1.3.1 identity number, if the originator is a South African citizen or resident; or
4.1.3.2 passport number if the originator is not a South African citizen or resident; or
4.1.3.3 address, if such an address is readily available; or
4.1.3.4 unique customer identifier assigned by the ordering financial institution to the originator, that uniquely identifies the originator to the ordering financial institution in respect of all transactions that the originator performs with that ordering financial institution.

 

4.2 An originator of an electronic funds transfer is the client of the ordering financial institution, as contemplated in the FIC Act, for the purposes of the execution of the electronic funds transfer. The ordering financial institution is required to comply with the FIC Act in relation to the originator of the electronic funds transfer.

 

4.3 The ordering financial institution of an electronic funds transfer is required to comply with the record-keeping requirements as contemplated in the FIC Act.

 

4.4 An ordering financial institution must ensure that all information pertaining to the originator, referred to in paragraph 4.1 above, is included in the electronic funds transfer. All the required information must be obtained and verified in accordance with section 21 of the FIC Act and the accountable institution’s Risk Management and Compliance Programme in terms of section 42 of the FIC Act.

 

4.5 An ordering financial institution must include the account number that the originator of an electronic funds transfer holds with the ordering financial institution in the electronic funds transfer, if such an account is used to process the transaction. In the absence of an account number, the ordering financial institution must assign a unique transaction reference number that permits traceability of the transaction to the originator in the ordering financial institution’s records. The transaction reference number must be included in the electronic funds transfer.

 

4.6 An ordering financial institution must include, in the electronic funds transfers, the following information concerning the beneficiary:
4.6.1 the name of the beneficiary; and
4.6.2 the account number that the beneficiary holds with the beneficiary financial institution, if such an account is used to process the transaction.

 

4.7 In respect of a cross-border electronic funds transfer that is a single transaction of less than R10 000, the ordering institution must include the following information, at a minimum, in the electronic funds transfer:
4.7.1 the name of the originator referred to in paragraph 4.1.1 above;
4.7.2 the account number or unique transaction reference number referred to in paragraph 4.5 above; and
4.7.3 the name of the beneficiary and account number referred to in paragraph 4.6 above.

 

4.8 The information in paragraphs 4.7.1, 4.7.2 and 4.7.3 in respect of cross-border electronic funds transfer that is a single transaction of less than R10 000 need not be verified for accuracy, unless there is a suspicion of money laundering or terrorist financing, in which case, the accountable institution should verify the information pertaining to its client. The cross-border electronic funds transfer threshold of R10 000 shall be reviewed by the SARB as and when appropriate.

 

4.9 In respect of an inward cross-border electronic funds transfer that is a single transaction of less than R10 000 from an originator in a high risk or other monitored jurisdiction as listed by FATF, a beneficiary financial institution must verify the accuracy of the beneficiary information.

 

4.10 If an ordering financial institution bundles more than one cross-border electronic funds transfer from a single originator in a batch file for transmission to beneficiaries:
4.10.1 the ordering financial institution in respect of the originator’s information is permitted to include only the account number or a unique transaction reference number referred to in paragraph 4.5 above;
4.10.2 the information concerning a beneficiary referred to in paragraph 4.6 above for each beneficiary in the electronic funds transfers; and
4.10.3 the batch file containing the required and accurate originator information and full beneficiary information should be fully traceable within the beneficiary country.

 

4.11 In the case of domestic electronic funds transfers, an ordering financial institution is permitted to substitute the information pertaining to the originator that is referred to in paragraph 4.1 above, with the originator’s account number at the ordering financial institution or other unique customer identifier for the originator, provided that the required information referred to in paragraph 4.1 can be made available, within three business days, to the beneficiary financial institution and to appropriate authorities or supervisory bodies upon request or demand in accordance with any law.

 

4.12 An ordering financial institution may not execute an electronic funds transfer if it cannot comply with the requirements referred to in paragraphs 4.1 to 4.11 above.

 

4.13 An ordering financial institution is required to comply with the record-keeping requirements as contemplated in the FIC Act.

 

4.14 An intermediary financial institution must ensure that all originator and beneficiary information that accompanies cross border and domestic electronic funds transfers remains with the electronic funds transfer throughout the payment chain.

 

4.15 Notwithstanding paragraph 4.8 above, an intermediary financial institution must ensure that the account number or a unique transaction reference number referred to in paragraph 4.5, concerning the originator and the required information concerning a beneficiary referred to in paragraph 4.6, remain with the electronic funds transfer throughout the payment chain.

 

4.16 An intermediary financial institution must take reasonable measures to identify cross-border electronic funds transfers that lack any of the information referred to in paragraphs 4.1 and 4.4 to 4.11 above.

 

4.17 An intermediary financial institution must develop, document, maintain and implement effective risk-based policies and procedures for determining:
4.17.1 when to execute, reject or suspend a cross-border electronic funds transfer that lack any of the information referred to in paragraphs 4.1 and 4.4 to 4.11 above; and
4.17.2 the appropriate follow-up action that the intermediary financial institution will take in each instance where it executes, rejects or suspends a cross-border electronic funds transfer referred to in paragraph 4.17.1 above.

 

4.18 An intermediary financial institution is required to comply with the record-keeping requirements as contemplated in the FIC Act.

 

4.19 A beneficiary financial institution must take reasonable measures to identify cross border and domestic electronic funds transfers that lack any of the information referred to in paragraphs 4.1 and 4.4 to 4.11 above.

 

4.20 A beneficiary financial institution must develop, document, maintain and implement effective risk-based policies and procedures for determining:
4.20.1 when to execute, reject or suspend a cross border and domestic electronic funds transfer that lacks any of the information referred to in paragraphs 4.1 and 4.4 to 4.11 above; and
4.20.2 the appropriate follow-up action that the beneficiary financial institution will take in each instance where it executes, rejects or suspends a cross border and domestic electronic funds transfer referred to in paragraph 4.20.1 above.

 

4.21 A beneficiary of an electronic funds transfer is the client of the beneficiary financial institution, as contemplated in the FIC Act, for the purposes of the execution of the electronic funds transfer. Subject to paragraph 4.8 above, the beneficiary financial institution is required to comply with the FIC Act in relation to the beneficiary of the electronic funds transfer.

 

4.22 The beneficiary financial institution of an electronic funds transfer is required to comply with the record-keeping requirements as contemplated in the FIC Act.