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July 3, 2026Disclaimer:
This blog offers general guidance based on information available at the time of publication. For the most up-to-date details, please contact Netcash or other service providers directly.
Being asked for multiple documents during onboarding can feel time-consuming and administratively taxing. But for your business to accept online payments, process debit orders, or process salary and supplier payments, this is a necessary and legally mandated step.
In South Africa, payment providers are required to know who they are working with: this is called “Know Your Customer”, or KYC for short. It’s a FICA-governed regulatory framework designed to prevent fraud and other financial crimes, such as money laundering and terrorism financing.
For SMEs using South African payment gateways, understanding the importance of KYC and its requirements can speed up the verification process and make it less frustrating. This article covers all you need to know about KYC, verification requirements, and how to avoid delays
Ready to accept secure online payments in South Africa?
Get in touch with us and start processing flexible digital payments with Netcash today!
What is KYC (and why it matters in South Africa)?
Know Your Customer (KYC) is a mandatory process that requires accountable businesses, particularly financial institutions, to verify their customers’ identities, legitimacy, and risk level before doing business. This is to curb fraud and maintain the integrity of the financial system.
In South Africa, the Financial Intelligence Centre Act (FICA) 38 of 2001 requires accountable institutions to perform customer due diligence (often referred to as KYC) to prevent financial crimes. The law requires institutions to verify client identities, monitor their transactions, and report any suspicious activity to FIC.
KYC is crucial for businesses as it safeguards them from potential non-compliance sanctions of up to R50 million for legal entities. Additionally, having a robust onboarding process can help you flag and mitigate high-risk clients, ultimately improving customer trust and your reputation.
On a national scale, this process helps the country combat financial crime, meet the global KYC standards required to participate in international markets, and attract foreign investment.
Why KYC verification is required to accept payments via Netcash
Netcash is an accountable institution under FICA. Due to the company’s participation in the National Payment System, Netcash is mandated by law to verify the identities of its customers, assess the risk associated with each one, monitor transactions, and maintain accurate records.
For our customers, this means they can:
- Process transactions securely
- Be protected against financial crimes
- Build a good reputation and improve customer trust in online payments
In essence, KYC verification helps ensure Netcash remains a secure, reliable platform for both businesses and their customers. KYC is a critical part of building a trusted payment ecosystem.
What you need to verify your Netcash account
SMEs looking to accept digital payments, handle debit orders, and process salary or supplier payments will need to submit valid, updated documents to Netcash for KYC verification. Additionally, ensure your documents are clear, legible, and match across all submissions.
Keep in mind that all submitted documents will be reviewed in line with strict FICA requirements. The more accurate and complete your submission, the faster your verification will be processed.
KYC documents required for verification vary by entity and may include additional requirements depending on the business. Below is a general guide to the documents typically required.
Individuals and sole proprietors
If you’re operating a business as an individual or sole proprietor, verification is done in your personal capacity. You’ll typically need to provide:
● A valid South African ID
● Proof of physical address
● A bank confirmation letter or a recent bank statement
● A SARS document confirming income tax registration
Each document plays a specific role. Your ID confirms who you are, your proof of address shows where you live and operate, and your bank confirmation ensures payouts are made to the correct account. The SARS document verifies that you are registered for tax in your personal capacity.
Registered businesses (companies & CCs)
For registered businesses, the verification process ensures that your company details align with official records and that all authorised individuals are correctly identified.
You’ll typically need to submit:
● CIPC registration documents
● Proof of business address
● Bank account confirmation
● ID documents for all directors
● Beneficial ownership information (where applicable)
These documents help confirm that your business is legally registered, operating from a valid address, and under the control of identified individuals. It’s important that your submitted KYC information matches your CIPC records. Even small discrepancies, such as differences in directors’ full names, surnames, or addresses, can delay verification.
Causes, NPOs, and trusts
For causes, non-profits, and trusts, additional governance checks are required. This ensures transparency and accountability, particularly where public or donor funds are involved.
You may be asked to provide:
● ID and a letter of authority for authorised signatories
● Proof of organisational address
● Stamped bank account confirmation in the organisation’s name
● An NPO certificate (if applicable)
● CIPC documents that identify directors for NPCs
● Trust deed and letters of authority for trusts
These requirements help ensure that the organisation is properly structured and that the individuals managing funds are authorised to do so.
Ready to accept secure online payments in South Africa?
Get in touch with us and start processing flexible digital payments with Netcash today!
Understanding ultimate beneficial ownership (UBO)
A key part of KYC is identifying Ultimate Beneficial Owners (UBOs). Simply put, a UBO is a natural person (not another company or a trust) who ultimately owns or controls a business, even if that ownership is indirect. This control may be through voting rights, even veto power, or other forms of influence.
Under FICA, accountable institutions are required to identify and verify the ultimate owner of a company, helping prevent hidden ownership structures and ensure transparency in financial transactions.
A UBO is typically someone who:
- Owns 5% or more of the business (directly or indirectly), or
- Exercises significant control or influence over the business
Identifying the UBO becomes especially important in more complex structures. For example:
- A company may be owned by another company
- A trust may hold shares in a business
- Trusts with corporate beneficiaries or multiple trustees
- A group structure may involve multiple layers of ownership
In such cases, Netcash must look beyond the top-level entity to identify the real individuals behind the business. For complex structures, one document often reveals another layer of ownership or control. As a result, additional documentation may be required at a later stage.
Without accurate UBO information, an institute such as Netcash is not allowed to establish or continue a business relationship.
Why you might be asked for additional documents
Not all businesses have simple ownership structures. If your business involves multiple entities, trusts, or layered ownership, it would be considered a complex structure, and therefore, additional documents may be required to determine the ultimate beneficial ownership.
In the initial stages of verification, Netcash will require:
Entity-level documents:
- Registration documents
- Share registers
- Trust deeds and letters of authority
- Partnership or group structure agreements
Individual-level documents (for UBOs):
- Certified ID or passport copies
- Proof of residential address
Depending on the company’s complexity, these initially required documents typically reveal a higher level of ownership or control. As a result, the verification often happens in stages.
The verification typically happens in four stages:
- Initial document review
- Follow-up requests (if needed)
- Netcash Beneficial Ownership Declaration
- Final verification
While this can feel repetitive, it ensures that Netcash meets its legal obligations under FICA.
Importantly, only documents that are legally required will be requested. Netcash is committed to transparency and will guide you through the process where additional information is needed.
What can slow down verification?
Most KYC verification delays are avoidable and usually stem from document quality, inconsistencies, or missing documents. Netcash cannot pursue or continue a business relationship with an establishment if its Know Your Customer verification details are inaccurate or incomplete.
Common issues include:
- Incorrect or incomplete document uploads
- Mismatched details across documents
- Outdated proof of address
- Invalid proof of address
- Blurry or low-resolution scans
- Selecting the wrong entity type
- No direct contact details provided for signatories, members, or directors
To avoid delays, double-check all documents before submitting. Ensure they are up to date, clearly visible, and consistent across all records. A little extra attention at this stage can significantly speed up your verification and help you accept digital payments faster.
Industry-specific KYC requirements
Some industries are subject to additional regulatory requirements. Depending on your business type, you may be asked to provide supporting documentation such as:
- Practice registration numbers (for healthcare providers)
- Accreditation or registration certificates (for educational institutions)
- Regulatory licences (for financial services providers)
These requirements ensure compliance within your specific industry. For most SMEs with straightforward operations, this won’t add significant complexity, but it’s something to be aware of if you operate in a regulated sector. Knowing this upfront can help you save time on admin.
What happens after verification with Netcash
Once your documents have been reviewed and approved, your Netcash account will be fully activated. Verification typically takes several business days, provided all documents are valid and complete. It may take longer if additional supporting documentation is required.
After approval, you’ll receive confirmation via email, and you’ll be able to:
- Start accepting online payments
- Run debit order collections
- Pay salaries and suppliers
- Access reporting and transaction management tools
Looking for an insurance premium collection partner that ensures compliance?
Reach out to Netcash and our team will guide you through the onboarding process.
Frequently asked questions about KYC in South Africa
Still have a few lingering questions? These popular FAQs can help with that.
Simplify KYC verification with Netcash today
Getting verified is an important step in setting your business up to transact within South Africa’s regulated financial environment. While the process may require documentation upfront, it helps create greater transparency, accountability, and trust across the payments ecosystem.
Understanding what’s required and preparing the correct documents from the start can make the process smoother. Whether you’re a sole proprietor, registered business, non-profit, or trust, having accurate and up-to-date information helps ensure your onboarding progresses efficiently.
At Netcash, our goal is to make verification as clear and straightforward as possible. Our team works closely with businesses throughout the onboarding journey, helping clients understand requirements and navigate any additional checks where necessary.
Once your account is verified, you’ll be ready to access a range of payment and collection solutions designed to support your day-to-day operations and long-term growth.
Looking to start accepting online payments, process debit orders, or run batch salary or supplier payments?
Reach out to Netcash for a FICA and KYC-compliant payment solution.
Author:
Aqeelah Jappie
Client Onboarding Manager
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Aqeelah Jappie is a Client Onboarding Manager at Netcash with over 10 years of experience in the financial services and payments space. She’s passionate about creating smooth, stress-free onboarding experiences and helping clients feel confident from day one. With a strong focus on KYC and end-to-end onboarding, she makes sure everything runs seamlessly behind the scenes. She enjoys working closely with clients to set them up for long-term success.
