In 2022 the Trust Property Control Act (“the Act”) was amended in response to the grey-listing of South Africa due to insufficient deterrence of money laundering. In this blog, we highlight what these amendments mean for Trustees, offering guidance on how to comply with the new requirements.
Under the amended Section 11A of the Act, Trustees are now required to:
- Establish and record the beneficial ownership of the Trust.
- Keep records of the prescribed information relating to the beneficial owners, such as full names, dates of birth, and nationalities.
- Maintain a register, known as the Beneficial Ownership Register with information relating to the beneficial owners, which must be lodged with the Master of the High Court and kept up to date.
- Keep a certified copy of the official identification document of each beneficial owner.
Who Are Beneficial Owners?
According to Section 1 of the Act, a beneficial owner is a natural person who:
- Directly or indirectly owns the relevant Trust property.
- Benefits from the Trust property.
- Exercises effective control over the administration of the Trust.
So this includes all the trustees, beneficiaries, and founder/s of the Trust.
Process to Be Followed
Trustees must:
- Download the Excel template for beneficial ownership information at https://trustonline.justice.gov.za/Masters.
- Complete the template with all the information in relation to the beneficial owners.
- Upload the completed template to the Trust Beneficial Ownership Register Online System, available at https://trustonline.justice.gov.za/Masters. Trustees first need to register on the system to submit, view, and update the Beneficial Ownership Register.
Just a warning- the information recorded will be available to law enforcement agencies and will contribute to the broader data on the ownership and control of South African entities.
Key Points to Note
- The Beneficial Ownership Register requirement applies to all Trusts in South Africa, regardless of their registration date or purpose.
- If there are any changes in the beneficial ownership information, Trustees or authorised persons must submit an updated register.
- These requirements came into effect on 1 April 2023, and while there is no specific cut-off date for submission, compliance is crucial to avoid penalties for non-compliance.
- Non-compliance with the requirements can result in severe penalties, including fines of up to R10 000 000.00, imprisonment for up to five years, or both, as stipulated in the Chief Master Directive 8 of 2023.
Our dedicated team can assist you with all the new reporting and disclosure requirements in order to ensure that your Trust is in compliance. For expert legal guidance and support in navigating the Trust Property Control Act, visit our website www.broekmann.co.za or contact us at +27 21 422 0269 or email us at admin@broekmann.co.za.