Motor Vehicle Registration Checks in South Africa: FICA, KYC & Dealer Compliance

Vehicle Registration Checks for Compliance

Motor vehicle dealers in South Africa have specific compliance obligations under FICA (Financial Intelligence Centre Act) and KYC (Know Your Customer) requirements. Vehicle registration checks are a crucial component.

FICA Requirements for Motor Dealers

Motor vehicle dealers are accountable institutions under FICA and must:

Verify customer identity
Establish and verify vehicle details
Keep records of transactions
Report suspicious activities
Implement risk-based approaches

Vehicle Registration as Part of KYC

Vehicle registration verification supports KYC by:

Confirming asset ownership claims
Verifying vehicle details provided by customers
Supporting source of funds documentation
Creating audit trails for compliance

What Dealers Must Verify

Comprehensive compliance includes checking:

Vehicle registration status
Registered owner details
VIN and engine numbers
Outstanding finance
Stolen vehicle status
Licence disc validity

Compliance Documentation

Dealers should maintain:

Verification records and timestamps
Customer identification documents
Transaction records
Suspicious activity reports (when required)
Risk assessment documentation

Best Practices for Dealer Compliance

Implement effective compliance by:

Establishing clear verification procedures
Training staff on FICA requirements
Using authorised verification services
Maintaining organised records
Conducting regular compliance audits

Conclusion

Motor vehicle registration checks are fundamental to dealer compliance in South Africa. Proper implementation of FICA and KYC requirements protects dealers and supports anti-money laundering efforts.