The paper is an attempt to deal with the non-transferable cheque. Three questions have been addressed: (a) Whether sections 58, 79 and 83 apply to non-transferable cheques; (b) whether the non-transferability of a cheque implies only that a cambial transfer is excluded, but transfer by means of a ordinary cession is still possible; (c) whether the collecting and drawee banks can be held liable for damages to the owner of a non-transferable cheque. (a) It is clear that section 58 does not apply to non-transferable cheques. After the decision in Eskom, it is also clear that section 79 does apply to such cheques. Regarding the applicability of section 83 to non-transferable cheques, there is uncertainty. (b) Whether the rights arising from a non-transferable cheque can be transferred by means of an ordinary cession, it is not yet clear. (c) That a collecting bank can be held delictually liable under the extended lex Aquilia was decided in lndac Electronics. By way of analogy, the same applies to a drawee bank acting negligently. / Mercantile Law / LL.M.

The paper is an attempt to deal with the non-transferable cheque. Three questions have been addressed: (a) Whether sections 58, 79 and 83 apply to non-transferable cheques; (b) whether the non-transferability of a cheque implies only that a cambial transfer is excluded, but transfer by means of a ordinary cession is still possible; (c) whether the collecting and drawee banks can be held liable for damages to the owner of a non-transferable cheque. (a) It is clear that section 58 does not apply to non-transferable cheques. After the decision in Eskom, it is also clear that section 79 does apply to such cheques. Regarding the applicability of section 83 to non-transferable cheques, there is uncertainty. (b) Whether the rights arising from a non-transferable cheque can be transferred by means of an ordinary cession, it is not yet clear. (c) That a collecting bank can be held delictually liable under the extended lex Aquilia was decided in lndac Electronics. By way of analogy, the same applies to a drawee bank acting negligently. / Mercantile Law / LL.M.

The opening of a bank account serves as the genesis of a bank customer relationship. It is imperative that the establishment of a bank customer relationship be regulated by law. Both the common law and statutory law regulate the admission of new clients to the realm of banking. It is a minimum requirement, in terms of both statutory and common law, that the identity of a prospective client who wishes to open a bank account must both be established and verified. This, the need to know one’s customer, is not only good law but common sense and an effective measure to prevent criminals from accessing the banking system. Parties who work together must know each other. The need to establish and verify the identity of a potential customer is commonly referred to as the Know Your Customer standards, alternatively the Customer Due Diligence framework. The Know Your Customer standards are neither unique to South Africa nor have their origins in South Africa. The Know Your Customer standards are international standards which the Financial Action Task Force and the Basel Committee on Banking Supervision have been advocating for quite some time. A confluence of the Recommendations of the Financial Action Task Force and the Basel Committee on Banking Supervision greatly influenced the birth of the Financial Intelligence Centre Act in South Africa. The Financial Intelligence Centre Act 38 of 2001 prescribes the steps that a bank has to take in order to establish and verify the identity of a potential client. It will be shown in this dissertation that the identification and verification regime established by the Financial Intelligence Centre Act 38 0f 2001 and the common law are not fool proof. This dissertation makes recommendations on how the current loopholes that exist in the law can be addressed. / Mercantile Law / LLM

The opening of a bank account serves as the genesis of a bank customer relationship. It is imperative that the establishment of a bank customer relationship be regulated by law. Both the common law and statutory law regulate the admission of new clients to the realm of banking. It is a minimum requirement, in terms of both statutory and common law, that the identity of a prospective client who wishes to open a bank account must both be established and verified. This, the need to know one’s customer, is not only good law but common sense and an effective measure to prevent criminals from accessing the banking system. Parties who work together must know each other. The need to establish and verify the identity of a potential customer is commonly referred to as the Know Your Customer standards, alternatively the Customer Due Diligence framework. The Know Your Customer standards are neither unique to South Africa nor have their origins in South Africa. The Know Your Customer standards are international standards which the Financial Action Task Force and the Basel Committee on Banking Supervision have been advocating for quite some time. A confluence of the Recommendations of the Financial Action Task Force and the Basel Committee on Banking Supervision greatly influenced the birth of the Financial Intelligence Centre Act in South Africa. The Financial Intelligence Centre Act 38 of 2001 prescribes the steps that a bank has to take in order to establish and verify the identity of a potential client. It will be shown in this dissertation that the identification and verification regime established by the Financial Intelligence Centre Act 38 0f 2001 and the common law are not fool proof. This dissertation makes recommendations on how the current loopholes that exist in the law can be addressed. / Mercantile Law / LLM