Johannesburg: 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 extension comes as amendments to the Trust Property Act of 1988, aimed at improving beneficial ownership transparency within South Africa’s regulatory framework, came into effect in April of the previous year.

According to South African Government News Agency, the DJCOD emphasized South Africa’s commitment as a member of the Financial Action Task Force (FATF) to align its regulatory environment with international standards for anti-money laundering and combating the financing of terrorism. Despite these efforts, the department noted a concerning ‘low level of compliance’ by trustees, which could significantly affect South Africa’s efforts to exit the grey list by the January 2025 deadline. Trustees are reminded that the law is currently in operation and that penalties for non-compliance are enforceable.

The Ministe
r of Justice and Constitutional Development has published regulations in Government Gazette No. 48351 on March 31, 2023, to facilitate the implementation of the Amendment Act. Prior to these amendments, the Trust Property Control Act of 1988 did not mandate reporting on beneficial ownership and lacked prescribed penalties for non-compliance.

The DJCOD has issued a stern warning that non-compliance with the act’s provisions will result in ‘harsher punishment.’ Under the Amendment Act, trustees commit an offence if they fail to disclose their status as trustees to an accountable institution, if they do not record the details of such institutions as required, or if they fail to establish, record, and maintain up-to-date beneficial ownership information as stipulated by regulations. Furthermore, a failure to lodge a register of this information with the Master of the High Court constitutes an offence.

The department has made it clear that no further extensions will be granted beyond November 30.