In terms of a recent media release issued by the Department of Justice and Constitutional Development, all Trustees are reminded of their obligation to submit the beneficial ownership submission in respect of Trusts.
The final deadline that has now been issued is 15 November 2024 with a limited grace period up until 30 November 2024 whereafter Trustees will face harsh punishment.
Trustees are reminded that the requirement to submit beneficial ownership came into effect on 1 April 2023 and that as a result of the low compliance with these provisions, South Africa is not in a position to exit the grey list by January 2025.
The issuance of this media statement implies that Trustees who do not comply with this obligation will likely receive letters from the relevant Master’s Office advising of their non-compliance status and the repercussions that may follow. The repercussions that non-compliant Trustees may face are:
- The Trustees may not be eligible to be appointed as a Trustees in respect of other Trust/s.
- The Trustees may be subject to a fine of up to R10 million.
- The Trustees may be subject to imprisonment for up to a period of 5 years.
- The Trustees could be subject to both a fine and imprisonment.
As South Africa is 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 by 15 November 2024.
