According to a recent press release from the Department of Justice and Constitutional Development, all Trustees must remember to submit the beneficial ownership information for Trusts.
The initial deadline for submission was the 15 November 2024 but with the numbers of Trustees that had not yet complied, they gave a short grace period until 30 November 2024.
Submissions after this date, Trustees may face severe consequences.
Trustees should be aware that the requirement to submit beneficial ownership details became effective on 1 April 2023.
Due to a lack of compliance with these rules, South Africa may not be able to be removed from the grey list by January 2025.
The release of this statement indicates that Trustees who fail to fulfill this obligation may receive notices from the Master's Office regarding their non-compliant status and the potential consequences.
The consequences that non-compliant Trustees may face are:
- Trustees may not be eligible to be appointed as a Trustee in respect of other Trust/s.
- Trustees may be subject to a fine of up to R10 million.
- Trustees may be subject to imprisonment for up to a period of 5 years.
- Trustees could be subject to both a fine and imprisonment.
As South Africa works hard to remain on a path to exit the grey list as soon as possible, Trustees are urged not to take this matter lightly and to ensure that they are compliant.
