DUE DILIGENCE AND KYC

Seller Due Diligence and Know Your Customer (KYC) Policy for RETAILS.co.za

RETAILS.co.za, a platform of ZA CREATIVE AND PROJECTS (PTY) LTD, is committed to fostering a safe and trustworthy marketplace for sellers and buyers. To achieve this, RETAILS.co.za adheres to a robust Seller Due Diligence and Know Your Customer (KYC) policy to ensure that all sellers using the platform meet legal and regulatory requirements, operate ethically, and contribute positively to the marketplace ecosystem. This policy applies to all individuals and businesses seeking to sell goods or services on RETAILS.co.za.

1. Purpose of the Policy

The purpose of this Seller Due Diligence and KYC policy is to:

  • Verify the identity and legitimacy of sellers on the platform.
  • Ensure compliance with South African regulatory and legal frameworks.
  • Protect buyers and maintain a high standard of trust and integrity on the platform.
  • Prevent fraudulent activities, money laundering, and other illegal practices.
  • Facilitate transparent and fair trade for all users of RETAILS.co.za.

2. Seller Onboarding Process

All sellers who wish to register and operate on RETAILS.co.za must undergo a thorough due diligence process that involves the following steps:

Step 1: Seller Registration

  • Sellers are required to complete the online registration form with accurate and truthful information, including:
    • Full name (for individuals) or registered business name (for companies).
    • Contact information (email, phone number, physical address).
    • Proof of identity for individuals (South African ID, passport, or driver’s license).
    • Proof of business registration for companies (CIPC registration certificate).
    • Tax registration details (VAT or tax number, if applicable).

Step 2: Identity Verification

  • Individual Sellers: Must provide a valid government-issued ID (South African ID, passport, or driver’s license) and proof of address (utility bill or bank statement not older than three months).
  • Business Sellers: Must provide a CIPC company registration document, proof of business address, and details of company directors or authorized representatives.

Step 3: Bank Account Verification

  • All sellers must provide valid banking details for receiving payouts. This information will be verified by RETAILS.co.za to ensure that it matches the seller’s registered name (individual or business).

Step 4: Background Checks

  • RETAILS.co.za will perform basic background checks on sellers to identify any history of fraudulent or unethical business practices. This may include:
    • Cross-referencing publicly available information (e.g., online reviews, past business records).
    • Verifying the seller’s tax compliance status via South African Revenue Service (SARS) records.

3. Ongoing Monitoring and Due Diligence

Seller due diligence does not end after onboarding. RETAILS.co.za will continuously monitor sellers to ensure compliance with the platform’s rules and regulatory requirements. Monitoring includes:

Regular Reviews

  • RETAILS.co.za will periodically review seller accounts to ensure that all information provided is up-to-date and accurate.
  • Sellers are required to update their account details (contact information, banking information, etc.) if any changes occur.

Transaction Monitoring

  • RETAILS.co.za will track seller transactions for any unusual or suspicious activity, including:
    • Sudden spikes in sales or product listings.
    • Customer complaints or negative reviews indicating unethical business practices.
    • Multiple refunds, cancellations, or disputes.

Red Flags

Sellers will be flagged for review if any of the following occurs:

  • High rate of complaints or disputes from buyers.
  • Inconsistent product descriptions or misleading advertising.
  • Failure to fulfill orders in a timely manner or providing poor customer service.
  • Evidence of counterfeit products or intellectual property violations.

4. Industry-Specific Due Diligence Requirements

Different industries face varying regulatory and compliance constraints in South Africa. As such, RETAILS.co.za has industry-specific due diligence protocols for sellers operating in certain sectors, including:

Agriculture and Smallholder Farming

  • Sellers must provide evidence of compliance with agricultural regulations, including proof of certification for organic products or food safety compliance where applicable.

Health and Wellness

  • Sellers offering products in the health sector (e.g., vitamins, supplements, or medical devices) must provide proof of registration with the South African Health Products Regulatory Authority (SAHPRA) if required by law.

Food and Beverage

  • Sellers in the food and beverage industry must adhere to food safety regulations and may need to provide certifications (e.g., HACCP, FSSC 22000) to demonstrate compliance.

Fashion and Apparel

  • Fashion sellers are required to ensure that their products comply with South African intellectual property laws and avoid the sale of counterfeit goods.

Electronics

  • Sellers offering electronics must provide valid import licenses or certifications for the sale of goods, where necessary.

Beauty and Cosmetics

  • Cosmetics sellers must ensure compliance with regulations set by the Department of Health and provide details about product safety, labeling, and quality testing.

Crafts and Artisan Goods

  • Sellers must guarantee that their products are ethically sourced, particularly in cases involving the sale of indigenous or culturally significant items.

Mining and Natural Resources

  • Sellers in mining communities must ensure that any minerals or raw materials sold adhere to South Africa’s laws on responsible sourcing and trade, including conflict-free minerals.

5. KYC Documentation Requirements

Below is a list of required documents for KYC verification, depending on the seller type:

Seller Type Required Documents
 Individual Sellers ID document (ID card, passport), proof of address, bank account verification
 Sole Proprietor ID document, tax registration certificate, proof of address, bank account verification
 Small Business (SMME) CIPC registration, tax clearance certificate, director ID, proof of address
 Corporation CIPC registration, tax clearance certificate, director IDs, company bank account verification
 Industry-Specific Certifications as applicable (e.g., food safety, import license, SAHPRA registration)

 

6. Compliance with South African Regulations

RETAILS.co.za is committed to complying with all relevant South African laws and regulations, including:

  • Protection of Personal Information Act (POPIA): Ensuring that all personal information provided by sellers is securely stored and processed.
  • Consumer Protection Act (CPA): Ensuring that sellers comply with fair trading practices and that buyers are treated fairly.
  • SARS Tax Compliance: Ensuring that sellers meet all tax obligations, including VAT registration if applicable.

7. Consequences of Non-Compliance

Non-compliance with the RETAILS.co.za Seller Due Diligence and KYC policy may result in the following actions:

  • Suspension or termination of the seller’s account.
  • Withholding of payouts until compliance is restored.
  • Legal action or reporting to authorities if fraudulent or illegal activities are identified.

8. Benefits of KYC and Due Diligence for Sellers

By adhering to the RETAILS.co.za KYC and Due Diligence Policy, sellers gain the following advantages:

  • Trust and Credibility: Verified sellers are more likely to attract buyers who seek trustworthy and legitimate businesses.
  • Compliance: Sellers can operate with confidence, knowing they comply with South African regulatory requirements.
  • Improved Visibility: Sellers who comply with platform standards and regulations may benefit from better visibility and promotional opportunities on RETAILS.co.za.

9. Government and Corporate Collaboration

RETAILS.co.za seeks to work closely with government agencies (such as the Department of Small Business Development, SEDA, SEFA, and others) and corporate ESD (Enterprise and Supplier Development) programs to onboard sellers from their databases. By ensuring that all sellers undergo proper due diligence, RETAILS.co.za aims to create a credible and compliant marketplace that fosters growth and sustainability.

10. Conclusion

RETAILS.co.za is committed to ensuring that its platform remains a safe, transparent, and compliant marketplace for all users. The Seller Due Diligence and KYC Policy is designed to uphold these standards, ensuring that sellers meet their regulatory obligations while contributing to a positive marketplace experience for buyers.