FICA - verify your address (kinda) electronically
The Financial Intelligence Center Act (FICA) has left many South Africans frustrated as banks are legally obliged to verify that the physical address that you provide to them is the address where you reside.
The source of the frustration is the multitude of documents that one needs to bring into the bank whenever one's address changes. The fact that one needs to go to the branch in the first place is another cause of frustration. If only one could verify an address over the Internet.
Here is a proposal: Verify your physical address in the same way that websites register email addresses.
Here's how email verification works: You type in your email address when you register at a website, and the website sends an email to that address with a verification code. You then need to return to the website and enter the verification code before the website trusts that the email address that you provided is correct.
So how do we use this technique to verify a physical address? Well, we do exactly the same thing, but instead of sending an email, the bank posts a letter with a verification code inside. You will then enter the verification code on the bank's website or phone their call center and quote the verification code.
This is acceptable for the following reasons:
- The existing technique requires some sort of bill / account with your address printed on it. In other words, all the bank needs to know is whether you've received mail from service providers at the address you claim to be living at. Mailing a verification code accomplishes the same thing.
- If security is a concern, consider that some banks mail your pin code via snail mail.
What are your thoughts? It would be great if we could get someone from the big four banks to comment.