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Lesotho: Customer Identity Verification Mandatory

In a bid to curb financial crimes such as money laundering and terrorist financing, Lesotho has implemented customer identity verification measures. The Money Laundering and Proceeds of Crime Act (MLPCA) 2008, which came into effect on April 10, 2008, requires financial institutions to conduct due diligence on their customers.

What Documents Do You Need?

As a Nedbank Lesotho Limited client, you will be required to provide certain documents for identity verification. These include:

  • Individual clients:
    • Valid National ID or Passport
    • Valid letter from local chief
    • Utility bill
    • Lease agreement
    • Employment contract
    • Payslip
  • Business and corporate clients:
    • Audited financial statements
    • Company registration documents
    • Traders license
    • Professional body license
    • Tax clearance certificate
    • Source of funds documentation
  • Small and Medium Enterprises (SMEs):
    • Traders license accompanied by valid tax clearance certificate or
    • Company registration documents accompanied by valid tax clearance certificate
  • Informal bodies and clubs:
    • Valid proof of registration or letter from local chief proving existence

Why Do You Need to Provide These Documents Again?

The MLPCA is continuously under review, and requirements may change. As a financial institution, Nedbank is obligated to comply with the legislation and its changes.

Consequences of Non-Compliance

If you fail to provide the required documentation or information, your accounts will be frozen. Nedbank will contact you using the latest contact details on file, but if you fail to respond, your accounts will be restricted.

What Can You Do?

To avoid any issues, please ensure that Nedbank has your latest contact details and:

  • Visit any branch
  • Call their customer contact center toll-free
  • Contact your relationship manager

Frequently Asked Questions

What happens if Nedbank is unable to contact me?

Your accounts will be frozen.

Do I need to go through this process for every account?

No, you only need to do it once for all personal accounts. Business accounts are treated separately.

What if I have a business and personal account?

You will need to submit separate documentation for each account.

By complying with these requirements, Nedbank aims to ensure that its customers are properly identified and verified, thereby reducing the risk of financial crimes in Lesotho.