FICA is the Financial Intelligence Centre Act which was implemented in order to eliminate money laundering and financial fraud. They create money laundering control obligations for banks and other professionals and institutions such as estate agents, brokers, attorneys and insurance companies. Money laundering is the process of transforming the proceeds of crime in order to hide its illegal origins and to turn it into a seemingly legitimate status, allowing “dirty” money obtained by a criminal offense to fall under the radar. It can be any form of money, property or any other asset which can constitute a laundering offense. They also aim to eliminate tax evasion and terrorist financial activities. 12,4% of all earned income up to an annual limit must be paid into Social Security and an additional 2,9% must be paid into Medicare. If you are a wage or salaried employee, you only pay half of the FICA bill (6,2% to Social Security and 1,45% to Medicare). Since July 2003, banks were required to obtain certain information and supporting documents from new customers before accounts could be opened. They were also required to re-identify their existing customers who were taken on before July 2003.
Online sports betting and gambling platforms are also considered “accountable institutions” and therefore need to comply with the regulations and requirements of FICA. Accountable institutions are also required to report any suspicious or unusual transactions as well as any deposits made over R25,000,00 to the Government Financial Intelligence Centre. The department also monitors the extent to which reports are made.
Players of online sports betting, lotto, gaming and gambling platforms are required to comply with FICA regulations. In order to FICA, players need to provide a certified copy of their I.D, proof of their residential address (not older than three months), their income tax number and if applicable, a marriage certificate. Players can do so by sending through utility bills, SARS documents, bank statements, rental lease agreements, motor vehicle registration documents, valid TV license documents (less than 1 year old), recent insurance policy documents, Telkom or cellphone accounts (less than 3 months old), mortgage/home loan statements (less than 3 months old) or rates invoices from their municipality (less than 3 months old). These documents can physically be taken to the offices of the sports betting company or they can be scanned and sent through by fax or email. Many online betting platforms have a FICA section on their website where players can submit the necessary documents. Players simply log-in to their account, go to the FICA Submission section and upload the relevant documents. See all FICA bonuses here.
There are severe penalties for those who do not comply with FICA regulations. These penalties include a period of imprisonment not exceeding 15 years or a fine not exceeding 10 million Rands. Since FICA has implemented their standards, a noticeable reduction in fraud has occurred. They have reduced the amount of stolen cash deposits, properties being purchased with drug money and plenty of identity theft has been uncovered and prevented by FICA.