Trustees Must Submit Beneficial Ownership Information

Trustees have until 15 November 2024 to submit their beneficial ownership details to the Master of the High Court or face harsher punishment. This is according to a media statement issued by the Department of Justice and Constitutional Development. This requirement is according to the updated Trust Property Control Act, which came into effect on 1 April 2023. If failing to do so a trustee can be liable to pay a fine of up to R10 million or imprisonment for a period of up to five years, or both.

The changes aim to improve transparency and help South Africa meet international standards to combat money laundering and terrorism financing. Trustees who don’t comply could face serious penalties, including fines up to R10 million, up to five years in prison, or both.

The government has highlighted that many trustees still haven’t submitted their information, which could hurt South Africa’s efforts to be removed from the Financial Action Task Force (FATF) grey list by January 2025. All trustees are urged to act quickly to avoid these severe penalties.

Read more on submitting beneficial ownership information for trusts in the Chief Master’s Directive 8.