The Companies and Intellectual Property Commission (CIPC) implemented beneficial ownership filing procedures from 24 May 2023 as a response to the Financial Action Task Force (FATF) placed South Africa on the Greylist of countries which are under increased monitoring.
South Africa has put new laws in place to address the FATF’s concerns, and those relating to beneficial ownership will have a significant impact on financial institutions and companies.
Key Deadlines and Compliance for Beneficial Ownership Filing
On 27 June 2024, SARS announced its enhanced Beneficial Ownership disclosures for the 2024 Filing Season. Not even 24 hours later, the CIPC issued a Media Release enforcing BO declaration, to be able to file Annual Returns, putting the focus on the importance of complying.
If these deadline for filing Beneficial Ownership are not met, not only will entities be liable for administrative fines, as initially indicated by the CIPC, but they will also be unable to file their annual returns, the consequences of which can result in the deregistration of the entity.
At CTV and Associates we are able to assist our clients with filing of Beneficial Ownership to CIPC, we assist with determining and advising of filing requirements. This is a service that goes hand in hand with the CIPC annual return.
Remember, full disclosure of BO in all legal entities, including companies, trusts and partnerships, is required by both the CIPC, and SARS, in the form of BO registers, and declarations on both company (ITR14) and individual (ITR12) tax returns.
Why Compliance Matters
Compliance with Beneficial Ownership filing requirements is not only a legal obligation but also a critical step toward ensuring transparency and aligning with international standards. Partnering with experts like CTV and Associates can help you navigate these requirements seamlessly and avoid potential penalties or operational disruptions.
Latest Updates
The Companies and Intellectual Property Commission (CIPC) is set to deregister approximately 800,000 companies due to non-compliance with Annual Returns, Beneficial Ownership declarations, and other requirements outlined in the Companies Act. Below the interview they had with SABC Morning Live, released on their official social media channel (youtube)
Research & Resources
- https://www.polity.org.za/article/sars-and-cipc-compliance-crusade-aimed-at-getting-south-africa-off-the-greylist-2024-07-08
- https://www.cliffedekkerhofmeyr.com/news/publications/2024/Practice/Corporate/corporate-commercial-alert-22-February-2024-beneficial-ownership-an-update-on-beneficial-ownership-registration-filings
- https://support.infodocs.co.za/en/article/everything-you-need-to-know-about-beneficial-ownership-as-of-august-2024-1u4q75o
- https://www.cipc.co.za/wp-content/uploads/2023/08/USER-GUIDELINES-BO-LEGISLATIVE-REQUIREMENTS_Aug-23.pdf
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