FICA

Question 1

What is the purpose of FICA?

Answer 1

1. Establish a FIC to combate money laundering activities and the financing of terrorist and related activities;
2. Impose duties on institutions and other persons who might be used for money laundering purposes;
3. Provide for customer due diligence measures (including re beneficial ownership and persons in prominent positions);
4. Provide for a risk-based approach to client ID and verification;
5. Provide for risk management and compliance programmes.

Question 2

What does FICA require of an accountable institution, which includes an Attorney, regarding a person you deal with?

Answer 2

Cannot establish a business relationship or conclude a single transaction with a client unless you have taken the prescribed steps (sec 21):

1. to establish & verify the client’s ID
2. to establish & verify the ID and authority of the person acting on behalf of the client
3. to establish & verify the ID and authority of person on whose behalf the client is acting
4. Must follow a risk-based approach
5. In your risk management & compliance programme, must deal with the types of docs to be obtained from the diff categs of persons under different circumstances

Question 3

What other duties does an Attorney have under FICA?

Answer 3

1. Keep detailed records of clients, business relationships and of transactions for a specified period;
2. (a) Make the records available to FIC (with a warrant)
   (b) if FIC requests it, confirm the existence of a current/ past mandate
   (c) Report cash transactions above a prescribed amount