BC Funding Solutions raises capital from private individuals, institutions, corporate entities and trusts to facilitate much-needed funding to Community Schemes, predominantly for underlying levy debtor problems or maintenance and capital projects. Our core focus is to provide and facilitate a sustainable value-added solution that will benefit our clients, as well as the unit owners of the Community Schemes, to ultimately ensure financial stability and protect the unit owner’s value of their investment in their property.
See our about us page for more information.
BC Funding Solutions performs the role of facilitator between the Community Schemes requiring loan funding, and you, the lender, willing to lend funds to, or in respect of, these Community Schemes.
The origination process follows defined lending criteria and is ultimately supported by legislation and contract. Once you, as the lender, are satisfied with the loan and have signed the legal documentation, you deposit your funds into an independent cash custody account administered by GAEL Fund Services (Pty) Ltd.
Yes, BC Funding Solutions is a registered credit provider. Our registration number is NCRCP 11132.
FINANCIAL INTELLIGENCE ACT (FICA)
The Financial Intelligence Centre Act, 2001 (“FICA”) has the objective to objective to regulate South Africa’s anti-money laundering and counter- terrorism financing programs.
In terms of Guidance Note 3A, published by the Financial Intelligence Centre:
“Apart from criminalising the activities constituting money laundering, South African law also contains a number of control measures aimed at facilitating the detection and investigation of money laundering. These control measures, as contained in the Financial Intelligence Centre Act, 2001 (the “FIC Act”), are based on three basic principles of money laundering detection and investigation, i.e., that:
- intermediaries in the financial system must know with whom they are doing business;
- the paper trail of transactions through the financial system must be preserved;
- possible money laundering transactions must be brought to the attention of investigating authorities.
The control measures introduced by the FIC Act include requirements for institutions to establish and verify the identities of their clients, to keep certain records, to report certain information and to implement measures that will assist them in complying with the FIC Act. The majority of obligations under the FIC Act apply to “accountable institutions”. These are institutions that fall within any one of the categories of institutions listed in Schedule 1 to the FIC Act.”
The Financial Intelligence Centre (“FIC”) is the agency responsible for the collection, analysis and disclosure of information to assist in the detection, prevention and deterrence of money laundering in South Africa. The FIC is also empowered to provide guidance in respect of compliance with FICA.
BC Funding Solutions is not an accountable institution at this stage – compliance with FICA is practised for its fiduciary duty and to mitigate risk. It is envisioned that BC Funding Solutions will become an accountable institution in the near future due to the nature of its business conducted.
The nature of the business conducted by BC Funding Solutions involves transactions that are easily susceptible to identity theft, financial fraud and/or money laundering and it is important to us to ensure that our independent consultants and/or employees are fully educated on the importance of complying with FICA.
Yes, there are two types of penalties for non-compliance with FICA, namely:
- Administrative sanction, which includes:
- a caution not to repeat the conduct which led to the non-compliance referred to in subsection (1);
- a reprimand;
- a directive to take remedial action or to make specific arrangements;
- the restriction or suspension of certain specified business activities; OR
- a financial penalty not exceeding R10 million in respect of natural persons and R50 million in respect of any legal person.
- Criminal sanction, which includes:
- a maximum penalty of 15 years or a fine not exceeding R100 million; or
- a maximum sentence of five years or a fine not exceeding R10 million for certain lesser offences.
FICA makes use of the Know Your Client (“KYC”) business principle to encourage relevant companies to “establish and verify the identity of their customers/clients before or during the time they do business.” The KYC principle plays a very important role in the compliance with the FICA requirements and responsibilities, amongst other it provides for controls which usually include the:
- collection and verification of identity documentation;
- screening against warning lists;
- client risk assessment; and
- investigations into client’s financial transactions.
PROTECTION OF PERSONAL INFORMATION ACT (POPIA)
POPIA is the abbreviation used when referring to the Protection of Personal Information Act 4 of 2013. The purpose of POPIA is to promote the protection of personal information processed by public and private bodies and commenced on the 1 st of July 2020.
Personal information means information relating to an identifiable, living, natural person and where it is applicable, identifiable, existing juristic person, including all information as defined in the Protection of Personal Information Act 4 of 2013.