If banks cannot identify their clients before June 30 they have until the end of the week to apply for an extension, the Financial Intelligence Centre (FIC) said on Wednesday.
Banks can petition finance minister Trevor Manuel for an exemption in terms of the Financial Intelligence Centre Act.
The Act, introduced in November 2001, gave banks until June 30 to comply with ”know your client” provisions. These require banks to establish and verify the identities of clients.
Acting director of FIC Murray Michell said requests for exemption would need to be well-motivated.
”Banks need to explain what they’ve been doing and what kind of obstacles they’ve come up against,” he told reporters in Johannesburg.
They would also have to confirm ”what volume of information concerning existing clients is outstanding and unverified,” Michell said. From July 1 banks would not be allowed to transact with existing clients unless they had identified them.
The provisions were introduced to prevent money laundering and maintain the integrity of financial systems, Michell said. – Sapa