Beneficial Ownership Declaration

Service Description

In the global fight against financial crimes such as money laundering and terrorist financing, many countries have recognized the importance of beneficial ownership transparency. South Africa is no exception, as it has implemented beneficial ownership legislation to promote greater transparency and accountability in corporate entities. One of the new requirements is that each Company and Trust must disclose and submit, in a prescribed format, the details of their "beneficial owners," who essentially include individuals connected to the management and ownership of the Company or Trust. These details must be made public and submitted annually to the relevant authorities. Failure to comply with the newly promulgated legislative requirements will have far reaching and serious consequences. This includes sanctions against companies from their trading banks, potential criminal charges, and imprisonment or a fine of up to R10 million. Since the penalty provision in the new "Article 19(2) of the Trust Property Control Act" has also been enforced, Trustees are also now seriously exposed to the aforementioned criminal consequences if they fail to comply. The documentation required for each "beneficial owner" and the accompanying process are very cumbersome and will require careful attention, which will necessitate the establishment of statutory mandatory records and registers from now on to simplify the process in the future. At Novum Group we have ensured that we are up to date with all the requirements of the new legislation and as such, we are in an ideal position to assist you.