LML4807 – BANKING LAW AND USAGE
SEMESTER 2 (2024)
ASSIGNMENT 02 (10 MARKS)
Carefully read the factual scenario below and answer the questions that follow with
reference to the Financial Intelligence Centre Act 38 of 2001 (FICA).
Marcus is a newly employed teller at the Money Galore Bank in South Africa. One
day he is approached by a gentleman who identifies himself as Mr. Soobramoney.
Although Marcus is not sure who the person is, he looks similar to someone that he has
recently seen on TV. Mr. Soobramoney advises Marcus that he is a frequent visitor to
South Africa and that he has a diplomatic relation with the government of South Africa.
He presents Marcus with an Indian passport. Upon opening the passport, Marcus
establishes the famous name Rakish Soobramoney, the newly elected president of
India. President Soobramoney asks Marcus to open a bank account for him.
1. In addition to the ordinary identification steps that Marcus is required to
take before opening such account, what additional steps must Marcus take in
order to open an account in the name of President Soobramoney in terms of
FICA?
In addition to the standard identification procedures mandated under FICA, Marcus must
undertake Enhanced Due Diligence (EDD) measures due to the high-profile nature of
the client, President Soobramoney.
Verification of Identification Documents:
Authenticate the Passport
Ensure the Indian passport presented is genuine by verifying security features and
cross-referencing with official databases or contacting relevant authorities1.
Confirm Diplomatic Status
Since Mr. Soobramoney claims diplomatic relations with the South African government,
Marcus should verify his diplomatic credentials through appropriate channels, such as
the South African Department of International Relations or the Indian Embassy2.
Assessment of Source of Funds and Wealth:
Detailed Inquiry
Conduct a comprehensive assessment to understand the origin of the funds to be
deposited, ensuring they are derived from legitimate sources3.
Documentation:
Request additional documentation or evidence supporting the legitimacy of the funds,
such as official financial statements or declarations4.
SEMESTER 2 (2024)
ASSIGNMENT 02 (10 MARKS)
Carefully read the factual scenario below and answer the questions that follow with
reference to the Financial Intelligence Centre Act 38 of 2001 (FICA).
Marcus is a newly employed teller at the Money Galore Bank in South Africa. One
day he is approached by a gentleman who identifies himself as Mr. Soobramoney.
Although Marcus is not sure who the person is, he looks similar to someone that he has
recently seen on TV. Mr. Soobramoney advises Marcus that he is a frequent visitor to
South Africa and that he has a diplomatic relation with the government of South Africa.
He presents Marcus with an Indian passport. Upon opening the passport, Marcus
establishes the famous name Rakish Soobramoney, the newly elected president of
India. President Soobramoney asks Marcus to open a bank account for him.
1. In addition to the ordinary identification steps that Marcus is required to
take before opening such account, what additional steps must Marcus take in
order to open an account in the name of President Soobramoney in terms of
FICA?
In addition to the standard identification procedures mandated under FICA, Marcus must
undertake Enhanced Due Diligence (EDD) measures due to the high-profile nature of
the client, President Soobramoney.
Verification of Identification Documents:
Authenticate the Passport
Ensure the Indian passport presented is genuine by verifying security features and
cross-referencing with official databases or contacting relevant authorities1.
Confirm Diplomatic Status
Since Mr. Soobramoney claims diplomatic relations with the South African government,
Marcus should verify his diplomatic credentials through appropriate channels, such as
the South African Department of International Relations or the Indian Embassy2.
Assessment of Source of Funds and Wealth:
Detailed Inquiry
Conduct a comprehensive assessment to understand the origin of the funds to be
deposited, ensuring they are derived from legitimate sources3.
Documentation:
Request additional documentation or evidence supporting the legitimacy of the funds,
such as official financial statements or declarations4.
