A media statement was issued by the Department of Justice and Constitutional Development in which the Department warned trustees who are found guilty of not complying with the provisions of the amended Trust Property Control Act, of harsh punishment for such non-compliance.
The implementation of the amendments to the Trust Property Control Act, 1988 came into effect on 01 April 2023.
The Amendment Act seeks to address the shortcomings in beneficial ownership transparency in South Africa’s regulatory framework. South Africa as a member of 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.
Any trustee who does not comply with the Amendment Act will face harsher punishment if they are found guilty in a court of law. 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 accountable institution 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.
A trustee who is convicted of any of the offences referred to above will be liable to a fine of up to R10 million or imprisonment for a period of up to five years or to both fine and imprisonment.
The deadline for the filing of the beneficial ownership register with the Master of the High Court is 15 November 2024. All trustees are nonetheless reminded that the law is already in operation and remains applicable together with the penalties for non-compliance.
FHBC is assisting clients with the lodgment of Beneficial Ownership Registers with the Master of the High Court. We are making contact with trust clients on an ongoing basis. In the event that we have not yet made contact with you as a trust client, please contact us for assistance without any delay to ensure compliance with the stated statutory obligations.
Should you require assistance with the lodgment of your Beneficial Ownership Register with the Master of the High Court, please send an e mail to monique@fhbc.co.za or lorraine@fhbc.co.za
Source Reference:
https://www.justice.gov.za/m_statements/2024/20240917-Trustees.html