How does legislation in South Africa affect you as a Purchase Card holder?

The Iemas Purchase Card is classified as a credit facility and therefore the Financial Intelligence Centre Act (FICA) and National Credit Act (NCA) are both applicable.  These acts make it compulsory for Iemas to ensure that the NCA and FICA rules are followed for each purchase card application.

1. FICA

FICA  came into effect on the 1st of July 2003 with the objectives to fight financial crimes, such as money laundering, tax evasion and terrorist financing activities.

How does this act affect your Iemas Purchase Card application?

A member’s FICA documentation is required with each application and it must be updated/confirmed every two years. FICA documentation consists of the following:

  • A copy of your ID document;
  • Proof of address less than three months old (i.e. utility bill, store account statement, bank statement with address, DSTV account, municipal letter).

2. Affordability:  NCA – New Affordability Assessment Regulations

The NCA came into effect on 1 June 2007 with the purpose is to monitor the credit industry and to protect the consumers from reckless lending.

Adapted from: http://www.justice.gov.za/mc/vnbp/act2005-034.pdf and http://www.banking.org.za/consumer-information/legislation/financial-intelligence-centre-act

How does the NCA rules affect your Purchase Card application?

  • With each application (including limit increase and budget account applications) you have to present your pay slips or bank statement/s for the last 3 months;
  • An affordability assessment must be done with each application. This will include a credit enquiry to ascertain your current credit profile.
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