A "stokvel" is described as members of a specific group which:
- Is a formal or informal rotating credit scheme with entertainment, social and economic functions.
- Fundamentally consists of members who have pledged mutual support to each other towards the attainment of specific objectives.
- Establishes a continuous pool of capital by raising funds by means of the subscriptions of members.
- Grants credit to and on behalf of members.
- Provides for members to share in profits and to nominate management; and
- Relies on self-imposed regulation to protect the interest of its members.
Nedbank considers a stokvel as an entity*; and as such the account is regarded as an entity account. The authorised signatories, being the mandated individual members, of the “stokvel” account are each regarded as controlling persons because the stokvel is classified as a passive non-financial [foreign] entity* (passive NFE).
*For any defined terms please see the Table of terms and definitions.
