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Learning Unit 2 Payment Chpt 6
Methods of Payment Law (Varsity College)
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Learning Unit 1: Banks and banking law
Theme 1: Introduction to banking law
Define all relevant terminology in terms of the Banks Act:
Banks play an important part in the functioning of the economy by performing various
roles, including that of payment and loan intermediary, as well as provider of payment
settlement facilities.
4 Principal methods of payment:
Money: physical money including cash
Payment cards: debit and credit cards
Funds transfer: customers instruction to the bank to transfer funds from one account
to another
Negotiable instruments: cheques and letters of credit
Discuss all the exclusions from the Act:
The Banks Act does not apply to the following:
The South African Reserve Bank (SARB).
The Land Bank
The Development Bank of Southern Africa
The Corporation for Public Deposits
The Public Investment Commissioners
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Financial Intelligence Centre Act (FICA): FICA residential address
The provision and verification of a residential address: The obligation to provide an
address and the need for such to be verified appears to have been the chosen
safeguard against identity fraud.
The value of providing a residential address for purposes of identifying a customer has
been questioned. De Koker argues that the negative impact of residential address
verification increases as a result of the high level of internal migration.
In South Africa, the verification of a client’s address has presented certain difficulties,
particularly with low-income individuals. The drafters of the FICA and its regulations
were aware of the fact that individuals who lived in informal settlements and rural
areas could face problems in verifying their residential address.
Compare the different tiers of banks available in South Africa:
First Tier banks:
Commercial bank: is a financial institution that provides banking services for their
customers, including businesses, organisations and individuals.
Banking services include the offering of current, deposit and savings accounts, as well
as providing loans to their customers.
Investment bank: is a financial institution that assists individuals, companies and
governments in raising capital by underwriting and/or acting as the client’s agent in the
issuance of securities.
Downloaded by Linc Kay ()
Learning Unit 2 Payment Chpt 6
Methods of Payment Law (Varsity College)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by Linc Kay ()
, lOMoARcPSD|14363929
Learning Unit 1: Banks and banking law
Theme 1: Introduction to banking law
Define all relevant terminology in terms of the Banks Act:
Banks play an important part in the functioning of the economy by performing various
roles, including that of payment and loan intermediary, as well as provider of payment
settlement facilities.
4 Principal methods of payment:
Money: physical money including cash
Payment cards: debit and credit cards
Funds transfer: customers instruction to the bank to transfer funds from one account
to another
Negotiable instruments: cheques and letters of credit
Discuss all the exclusions from the Act:
The Banks Act does not apply to the following:
The South African Reserve Bank (SARB).
The Land Bank
The Development Bank of Southern Africa
The Corporation for Public Deposits
The Public Investment Commissioners
Downloaded by Linc Kay ()
, lOMoARcPSD|14363929
Financial Intelligence Centre Act (FICA): FICA residential address
The provision and verification of a residential address: The obligation to provide an
address and the need for such to be verified appears to have been the chosen
safeguard against identity fraud.
The value of providing a residential address for purposes of identifying a customer has
been questioned. De Koker argues that the negative impact of residential address
verification increases as a result of the high level of internal migration.
In South Africa, the verification of a client’s address has presented certain difficulties,
particularly with low-income individuals. The drafters of the FICA and its regulations
were aware of the fact that individuals who lived in informal settlements and rural
areas could face problems in verifying their residential address.
Compare the different tiers of banks available in South Africa:
First Tier banks:
Commercial bank: is a financial institution that provides banking services for their
customers, including businesses, organisations and individuals.
Banking services include the offering of current, deposit and savings accounts, as well
as providing loans to their customers.
Investment bank: is a financial institution that assists individuals, companies and
governments in raising capital by underwriting and/or acting as the client’s agent in the
issuance of securities.
Downloaded by Linc Kay ()
