The South African government has recently implemented new laws aimed at increasing transparency and accountability around beneficial ownership for registered entities to combat financial crime, particularly money laundering and terrorist financing. As of 1 April 2023, all Close Corporations, Companies, and Trusts established or operating in South Africa are required to disclose their beneficial owners to the government's central register of beneficial ownership via the online platforms of the Companies and Intellectual Property Commission (CIPC) and Master of the High Court (Master).

The new law applies to all registered entities that hold assets or conduct business in South Africa. Directors of Companies, Members of Close Corporations, and Trustees of Trusts are required to provide information about the ultimate ownership or beneficiaries, including their names, addresses, and other identifying information. Non-compliance may leave owners exposed to fines of up to R 10 million- or 5 years imprisonment, or both.

In the case of a Trust, Trustees must provide information about any individuals who exercise control over the Trust or its assets, i.e., the Founder and Trustees as well as the Beneficiaries of the Trust.  The information must be provided as soon as possible and we shall be in contact to verify information.

In the case of a Company, Directors must also provide information about any individuals who exercise control over the company or its assets, i.e., Directors and Top Management Structure as well as the Shareholders of the Company to the point where the ultimate owner/s is a natural person.  The information must be filed with CIPC at the same time as the filing of the Annual Duty. We shall be in contact to verify the information.

In conclusion, the mandatory declaration of beneficial ownership for registered entities in South Africa is a significant development aimed at increasing transparency and accountability in the financial system.

Please contact us with any queries.