Designed to enhance transparency of the regulatory regime governing the beneficial ownership of trusts, the Trust Property Control Act (‘the Act’) and its Regulations were amended in 2023 to facilitate the introduction of progressive reporting mechanisms.
Resultantly, trustees are statutorily obligated to, inter alia, keep up-to-date records of the beneficial owners of trusts and to submit a register of the prescribed information regarding beneficial ownership to the Office of the Master of the High Court.
Although the amendments took effect on 1st April 2023, no deadline was ever specified for the lodgement of beneficial ownership registers. However, the Master recently confirmed that the deadline for filing this information is today, 15th November 2024.
Notably, the Act introduces stern penalties for non-compliance, namely a maximum fine of R10 million, five years’ imprisonment, or both. In September, the Department of Justice and Correctional Services clarified that non-compliant trustees would face ‘harsh’ penalties for non-adherence given existing low levels of compliance and South Africa’s ongoing bid to exit the FATF’s grey list.
As such, it is imperative that trustees comply with these legislative obligations and submit their beneficial ownership registers as soon as reasonably possible to avoid punitive consequences.
STBB’s trust law specialists advise on various trust-related matters, including the formation and registration of trusts, amendments to trust instruments, and the lodgement of beneficial ownership registers.
For expert legal assistance, contact our specialists at trusts@stbb.co.za.
