Beneficial Ownership Disclosure and Trusts

• Jurisdiction: South Africa
• DOI: 10.10520/ejc-btclq_v15_n3_a2
• Author: Aneria Bouwer
• Pages: 1-8
• Date: 01 September 2024
• Published date: 01 September 2024
• Published By: Siber Ink

1

© Juta and Company (Pty) Ltd

Benef‌i cial Ownership Disclosure

and Trusts

ANERIA BOUWER*

ABSTRACT

This article deals with the obligation of trustees to submit an electronic register

of the benef‌i cial owners of a trust to the Master of the High Court. The article

explores the aim of these disclosure requirements and considers the applica-

tion of the benef‌i cial ownership def‌i nition in the Trust Property Control Act to

employee share ownership plan trusts.

The writer laments the fact that share ownership plans are not excluded

from these disclosure obligations, taking into account the comprehensive tax

reporting obligations of a share ownership plan.

Introduction

During 2023, South Africa introduced new rules regarding the disclosure

of benef‌i cial ownership of assets as part of the measures to address the

def‌i ciencies in its laws regarding anti-money laundering and the combat-

ting of terrorism f‌i nancing. In the context of trusts, the disclosure require-

ments were introduced by means of a new section 11A of the Trust Property

Control Act 57 of 1988 (‘TPCA’), to be read with the Regulations issued in

terms thereof.

The aim of these rules is to provide transparency regarding the owner-

ship of trust assets, thus attempting to ensure that corporate and trust

structures are not used to hide the identity of the natural persons who will

ultimately benef‌i t from and who control the assets held by these structures.

The rules were introduced virtually overnight, with effect from 1 April

2023. The rules applicable to trusts and companies are not identical and

persons who act as trustees of trusts and as directors of companies, must

ensure that they are familiar with both sets of rules.

Although the TPCA does not stipulate a deadline for the submission of

Benef‌i cial Ownership Registers and there has as yet been no indication that

the Master of the High Court (‘Master’) is taking steps to enforce compli-

ance, trustees should be aware of their obligations in this regard, as the

failure to comply could result in a f‌i ne of up to R10 million and/or impris-

onment for a period of up to f‌i ve years.

* Senior Consultant, Bowmans Attorneys.

2024 15(3) BTCLQ 1

.