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South Africa's Justice Department Announces 15-Day Grace Period for Trustee Beneficial Ownership Filings

Published November 17, 2024
3 months ago

The Department of Justice and Constitutional Development in South Africa has implemented a final grace period of 15 days for trustees to submit their details to the Beneficial Ownership Register. As part of the country's commitment to adhering to international anti-money laundering standards and combating the financing of terrorism, South Africa faces a critical period of regulatory compliance.





The initial deadline for such filings, which are a requirement under the amended Trust Property Control Act of 1988, was set for November 15, 2024. The Department has made it clear that no further extensions will be provided beyond the 30th of November, 2024. This strict standpoint emphasizes the importance the South African government places on ensuring a transparent beneficial ownership environment.


The Trust Property Control Act, which has been in place since 1988, recently underwent significant revisions that came into force on April 1, 2023. These modifications were a direct response to shortcomings identified in South Africa's framework concerning the transparency of beneficial ownership. By enhancing these regulations, South Africa shows alignment with the international standards set forth by the Financial Action Task Force (FATF), of which it is a member.


Under the new regulations, trustees are now liable to criminal offense if they fail to adequately disclose trust-related transactions to accountable institutions or neglect to maintain accurate records of beneficial owners. The Department has taken note of the low compliance rates among trustees regarding the lodging of beneficial ownership information with the Master of the High Court. This lackluster approach to compliance could significantly affect South Africa's efforts to be removed from the "grey list" by FATF before the January 2025 deadline.


Moreover, the Minister of Justice and Constitutional Development has taken proactive measures to ensure the enforcement of these amendments. To facilitate compliance, regulations were published in the Government Gazette No. 48351 on March 31, 2023. These latest developments reflect a departure from the earlier regulatory framework that lacked provisions for reporting on beneficial ownership and associated penalties.


In the current climate of heightened regulation, trustees in South Africa must understand their obligations and the severe repercussions of non-compliance. Those found guilty of not adhering to the stringent rules face harsh punishments as the country ramps up efforts to revamp its trust property management, aiming at bolstering its stance against money laundering and the financing of terrorism.


As the deadline looms, trustees are urged to familiarize themselves with the amended Trust Property Control Act, ensuring all necessary disclosures and records are up to date and filed with the appropriate authorities. The 15-day grace period is a final concession from the Justice Department—an opportunity for trustees to align with new legal standards or risk facing legal and financial repercussions.


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