Media Statement

Increased measures for Trusts to combat money-laundering and terrorism financing crimes

04 May 2023

The Ministry of Justice and Correctional Services would like to inform members of the public that the implementation of the amendments to the Trust Property Control Act, 1988 (Act No. 58 of 1988) by the General Laws (Anti Money-Laundering and Combating Terrorism Financing) Amendment Act, 2022 (Act No. 22 of 2022) (“the Amendment Act”) has come into effect as from 01 April 2023. Members of the public who do not comply with the Amendment Act will face harsher punishment if they are found guilty in a court of law.

The President of the Republic of South Africa proclaimed 01 April 2023 as the commencement date of section 1 to 8 of the Amendment Act. The Minister of Justice and Correctional Services made regulations that were published in Government Gazette No. 48351 on 31 March 2023 (“the Regulations”) in order to facilitate the implementation of the Amendment Act.

The Amendment Act seeks to address the shortcomings in beneficial ownership transparency in South Africa’s regulatory framework.

South Africa is obliged, as a member of Financial Action Task Force (FATF), to ensure that its regulatory environment is geared towards international standards in anti-money laundering and combating financing of terrorism.

According to the Amendment Act, a trustee commits an offence if they fail to–
(a) disclose to an accountable institution that they engage with in the capacity of a trustee, that the relevant transaction or business relationship relates to trust property;
(b) record the details of accountable institution prescribed in regulation 3B;
(c) establish and record the beneficial ownership information of a trust prescribed in regulation 3C;
(d) keep an up to date record of the beneficial ownership information prescribed in regulation 3C;or
(e) lodge a register of the beneficial ownership information prescribed in regulation 3C with the Master of the High Court.

PENALTIES FOR NON-COMPLIANCE
A trustee who is convicted of any of the offences referred to above will be liable to a fine of up to R10 million, or imprisonment for a period of up to five years, or to both such fine and imprisonment. The Trust Property Control Act, 1988 did not provide for reporting on beneficial ownership and hence, had no prescribed penalties for non-compliance prior to the amendments.

Follow this link for a summary of amendments to the Trust Property Control Act, 1988 (Act No. 57 of 1988).

Issued by the Ministry of Justice and Correctional Services

Enquiries:
Mr. Chrispin Phiri
Spokesperson: Ministry of Justice and Correctional Services
081 781 2261