As previously communicated, a new reporting obligation for Trustees was gazetted on 31 March 2023, which amended the Trust Property Control Act, Act 57 of 1998 (TPCA). The implementation of the amendments came into effect on 1 April 2023 and Trustees are now obligated to lodge and keep up-to-date records of the beneficial ownership of trusts. This amendment places a burden of responsibility on Trustees to maintain comprehensive data regarding beneficial ownership of trusts and to record the details with The Master of the High Court.
These obligations apply to all Trustees, regardless of the nature of the trust, or the value therein, including family trusts, business trusts and public benefit organisation trusts.
The deadline for the filing of the beneficial ownership register with the Master of the High Court is 15 November 2024.
Consequences of non-compliance
Failure to comply with these requirements may result in a penalty of up to R10m and/or five years imprisonment for the Trustees. Additional sanctions may be applied by the Master of the High Court or the Financial Intelligence Centre.
It is likely that trust changes lodged with the Master of the High Court may trigger an inspection of the beneficial ownership database, resulting in penalties for non-compliance.
What can you do?
If you are a Trust client of MD, we have attended to these regulatory requirements on your behalf. If you are not a Trust client, we could assist you with the submission of all the mandatory information.
Our fees relating to this service will be based on the time spent by our trust administration department to prepare and submit the register to the Master, maintain the beneficial ownership details in the prescribed format, and to assist you, as the Trustees to collect, record and maintain details pertaining to Accountable Institutions that have dealings with us as the Trustees.
Please let us know if we may assist you by emailing me Stephanie.Phillips@mdacc.co.za.
Stephanie Phillips | Compliance Officer
