FICA and bank onboarding: why opening an account takes so long
At a glance
What FICA is: The law requiring banks to know their customer and verify identity and funds
Why foreigners face friction: Verification expects verified ID, address and often a local footprint
What helps: Certified documents, a local director or public officer, and clear source-of-funds proof
The risk: A bank can refuse or close an account if verification is incomplete
Plan ahead: Onboarding can take weeks, so start before you need the account
What it is
FICA — the Financial Intelligence Centre Act — makes banks verify who their customers are and where their money comes from. That is why a new account involves identity documents, proof of address, company records and questions about source of funds. For a company with foreign directors, those checks are harder, so the process takes longer.
The important point: FICA is a paperwork problem, not a policy problem. The account that opens fastest is the one with the tidiest file.
Who this affects
Companies with foreign directors
A bank must verify every director and beneficial owner. If a director is abroad, expect requests for certified, apostilled or notarised documents.
Foreign-owned businesses
Source-of-funds questions are often the sticking point. Having a clear, documented story for where the money comes from speeds everything up.
Questions to ask first
Do we have certified ID, proof of address and company records for every director and owner?
Can we clearly explain the source of the funds going into the account?
Is there a local director or public officer who can attend to the account?
Do the company's CIPC records match what we are telling the bank?
Have we allowed enough time before the account is urgently needed?
How to speed up onboarding
1. Collect certified ID, proof of address and company records for every director and owner.
2. Prepare a clear, documented source-of-funds story.
3. Check that your CIPC records match what you tell the bank.
4. Appoint a local director or public officer who can attend to the account.
5. Start the process early, before you urgently need the account.
Common mistakes
Providing uncertified or expired documents, which restart the clock.
Being vague about source of funds, which triggers more questions.
Assuming registration alone is enough for a bank account.
Leaving onboarding until the last minute, then losing deals.
Related
Sources
Financial Intelligence Centre Act (FICA)
Financial Intelligence Centre: guidance for accountable institutions
Struggling to open a business account?
We can help you prepare the FICA and source-of-funds file the bank will ask for.
