This glossary defines the key terms used in KYC compliance for South African exporters. Each term links to the relevant detailed guide. For a comprehensive introduction to KYC, see the What Is KYC? pillar page.

AML (Anti-Money Laundering)[Anti-money laundering]
A set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. For South African exporters, AML compliance means having a documented policy for customer due diligence, record-keeping, and suspicious transaction reporting.
See also: AML Compliance Guide
Beneficial Owner
A natural person who ultimately owns or controls a legal entity, either through direct ownership of shares or voting rights, or through indirect control. Under the General Laws Amendment Act 22 of 2022, South African companies must disclose all beneficial owners who own or control more than 5% of the company.
See also: Beneficial Ownership Guide
CBAM (Carbon Border Adjustment Mechanism)
An EU regulation that requires importers of carbon-intensive goods (iron, steel, aluminium, cement, fertilisers, electricity, hydrogen) to purchase carbon certificates corresponding to the carbon price that would have been paid under EU carbon pricing rules. Implemented in full from 2026.
See also: The Three Keys Guide
CIPC (Companies and Intellectual Property Commission)[Companies and Intellectual Property Commission]
The South African government body responsible for company registration, intellectual property rights, and business rescue. CIPC registration is the foundational step in the KYC process for South African exporters.
See also: CIPC Verification Guide
CDD (Customer Due Diligence)[Know your customer]
The process of verifying the identity of a customer and assessing the risk of the business relationship. Standard CDD involves identity verification and beneficial ownership disclosure. Enhanced CDD (EDD) applies to high-risk customers, including those from FATF grey-listed jurisdictions.
See also: What Is KYC?
DPP (Digital Product Passport)[Digital product passport]
A digital record that travels with a product throughout its lifecycle, containing information about its materials, environmental impact, supply chain, and compliance status. Mandated by the EU Ecodesign for Sustainable Products Regulation (ESPR) for textile products from 19 July 2026.
See also: KYC and the DPP Guide, The Three Keys Guide
EDD (Enhanced Due Diligence)
A higher level of customer due diligence applied to high-risk customers. Under EU AMLD6, EDD is mandatory for customers from FATF grey-listed jurisdictions, including South Africa. EDD requires more documentation, longer verification timelines, and senior management approval.
See also: FATF Grey-Listing Guide
ESPR (Ecodesign for Sustainable Products Regulation)
EU Regulation 2024/1781 that introduces Digital Product Passports for all products entering the EU market. The first product category covered is textiles, with DPPs mandatory from 19 July 2026.
See also: KYC for Textile Exporters, KYC and the DPP Guide
EUDR (EU Deforestation Regulation)
EU Regulation 2023/1115 that requires importers of cattle, cocoa, coffee, palm oil, soya, wood, rubber, and derived products to prove that the products are deforestation-free. Applies to South African exporters of these commodities.
See also: KYC for Agricultural Exporters
FATF (Financial Action Task Force)[Financial Action Task Force]
The international standard-setting body for anti-money laundering and counter-terrorist financing. The FATF places countries with strategic AML/CFT deficiencies on its "grey list" (Jurisdictions under Increased Monitoring). South Africa was grey-listed in October 2023.
See also: FATF Grey-Listing Guide
FICA (Financial Intelligence Centre Act)[Financial Intelligence Centre Act]
The Financial Intelligence Centre Act 38 of 2001 is South Africa's primary anti-money laundering legislation. It established the Financial Intelligence Centre (FIC) and imposed customer identification, record-keeping, and suspicious transaction reporting obligations on accountable institutions.
See also: FICA Act Explained
FIC (Financial Intelligence Centre)
The South African government body responsible for receiving, analysing, and disseminating financial intelligence to combat money laundering and terrorist financing. Established by FICA. The FIC is South Africa's national financial intelligence unit.
See also: FICA Act Explained, AML Compliance Guide
KYC (Know Your Customer)[Know your customer]
The process of verifying the identity of a business entity and its beneficial owners. For South African exporters, KYC verification is required by EU buyers under AMLD6 and by the Digital Product Passport Registry as a prerequisite for product registration.
See also: What Is KYC?, The KYC Process
Smart ID Card
The South African national identity card introduced in 2013 as a replacement for the green ID book. The Smart ID card contains a microchip with biometric data and is the primary KYC anchor document under FICA. EU buyers require the Smart ID card and will not accept the green ID book.
See also: Smart ID Compliance Guide
Three Keys
The Three Keys EU Export Compliance Ecosystem: Gate 1 (KYC Registry — company identity verification), Gate 2 (CBAM Registry — carbon content declaration), and Gate 3 (Digital Product Passport Registry — product compliance passport). KYC (Gate 1) must be completed before DPP registration (Gate 3).
See also: The Three Keys Guide