South Africa's financial sector is undergoing significant regulatory changes to combat money laundering, terrorist financing, and proliferation financing. Accountable institutions (and others now) must adapt to these changes to ensure compliance and mitigate risks. We explore and summarise some of the more recent changes. The employee screening changes below are unrelated to the CIPC and Master's Office changes.
Employee Screening - FICA Directive 8 and Public Compliance Communication 55
It is important to note that the employee screening changes are specific to all accountable institutions. Totally separate to that is the CIPC and Master's Office changes. They are not applicable to accountable institutions/financial services only but all companies and trusts and is a "once-off" and "when there are changes" exercise.
So the next two headings applies to all Trusts and Companies in South Africa - note you cannot comply with it yet because the systems are not in place yet to be able to report. This is totally separate to FICA UBO screening/checks that accountable institutions have to do and must not be confused. In future this information might help accountable institutions to check this more easily to establish who the UBO's are.
Beneficial Ownership (BO) Transparency and the Companies Act
Beneficial Ownership and Trusts
In conclusion, South Africa's financial sector is taking significant steps to enhance transparency and combat financial crime. Accountable institutions must adapt in future to these regulatory changes to ensure compliance and mitigate risks. By understanding and implementing the requirements of Directive 8, beneficial ownership transparency, and trust regulations, accountable institutions can contribute to a more secure and transparent financial sector in South Africa.
See the following links on the CIPC and Master of the High Court's websites:
by: Horizon Compliance team