Trustees have been granted a 15-day grace period to file their details on the beneficial ownership register by the Department of Justice and Constitutional Development (DJCOD).
This after amendments to the Trust Property Act of 1988 came into effect in April last year, in a bid to address shortcomings in beneficial ownership transparency in South Africa’s regulatory framework.
“South Africa, as a member of the Financial Action Task Force [FATF], is obliged to ensure that its regulatory environment is geared towards international standards in anti-money laundering and combating financing of terrorism,” the DJCOD said.
The department noted that there has been a “low level of compliance” by trustees.
“This low level of compliance will have a significant impact on SA exiting the grey list by the January 2025 deadline. All trustees are reminded that the law is already in operation and remains applicable, together with penalties for non-compliance.
“The Minister of Justice and Constitutional Development made regulations that were published in Government Gazette No. 48351 on 31 March 2023, in order to facilitate the implementation of the Amendment Act.
“Prior to these amendments, the Trust Property Control Act, 1988, did not provide for reporting on beneficial ownership and hence, had no prescribed penalties for non-compliance,” the department said.
The DJCOD warned that non-compliance with the provisions of the act will lead to “harsher punishment”.
“According to the Amendment Act, a trustee commits an offence if they fail to disclose to an accountable institution that they engage with in the capacity of a trustee, that the relevant transaction or business relationship relates to trust property.
“The trustee also commits an offence if they fail to record the details of an accountable institution, as prescribed in regulation 3B; if they fail to establish and record the beneficial ownership information of a trust prescribed in regulation 3C and when they fail to keep an up to date record of the beneficial ownership information prescribed in regulation 3C or fails to lodge a register of the beneficial ownership information prescribed in regulation 3C with the Master of the High Court,” the department said.
The DJCOD said no further extension will be granted after 30 November. – SAnews.gov.za
