In December 2022 the General Laws (Anti Money Laundering and Combatting Terrorism Funding) Amendment Act, 2022 was approved.

This Act amended various Acts of Parliament including the Trust Property Control Act, 1988.

On the 31st of March 2023, new reporting regulations were implemented in terms of the amended Trust Property Control Act No, 57 of 1988 (“the Act”), whereby a trustee is now required to comply with an additional prescribed obligation in that he/she is required to keep an up to date register of all beneficial owners of a trust, as well as an up to date register with prescribed details of all accountable institutions which act as an agent for the trustee in respect of his/her duties towards trust property.

The term ‘beneficial owner’ includes the following: 

• a natural person who directly or indirectly owns the relevant trust property;
• a natural person who exercises effective control of the administration of the trust;
• the founder/s of the trust;
• the trustee/s of the trust; and
• the beneficiary/beneficiaries referred to by name in the trust.
One of the amendments made to the abovementioned Act was the insertion of section 11A.

In terms of this section the following is required:

• The trustee must keep a detailed record of all beneficial owners of a trust with all required particulars of each beneficial owner.

• The trustee must then lodge their register with the prescribed particulars concerning each beneficial owner of a trust with the Master.

• The trustee must make sure that all the particulars of each beneficial owner of a trust are kept up to date and that they keep a certified copy of each beneficial owner’s identity document on file.

• The prescribed particulars for each beneficial owner include the full name of beneficial owner, date of birth, nationality, official identity number, citizenship, residential address, other means of contact, why the person is a beneficial owner and (if applicable) the date on which they were no longer a beneficial owner. 

• The Master is required to keep a register containing the prescribed information for each beneficial owner of the trust.

• The register of the Master is electronic and will grant access to registered users through a username and password.

In terms of newly amended section 19 of the Act, a trustee who does not comply with the above-mentioned obligations pertaining to registers of beneficial owners/accountable institutions, will be guilty of committing an offence and will be liable for payment of a fine not exceeding R10 million or imprisonment for a period not exceeding five years or both.

Taking the above into account and the grave consequences of non-compliance with the Act, trustees are reminded to exercise ongoing due diligence in making sure that they maintain proper and continually updated registers of all trusts in which they serve as trustees and that they submit same to the Master.


References

1. Mazansky E ‘Important legal changes that trustees must know’ 1 February 2023 (https://www.werksmans.com/legal-updates-and-opinions (Werksmans Attorneys), Accessed 11 April 2023.

2. Hughes, N, ‘New trust regulations relating to beneficial ownership’ (https://www.rsm.global/southafrica/insights/new-trust-regulations-relating-beneficial-ownership-registers-and-records-details-accountable-institutions) Accessed on 11 April 2023.
 
3. Van der Spuy, P ‘Trustees are now required to capture “beneficial owner” details on the Master’s portal’(https://trusteeze.co.za/article/trustees-are-now-required-to-capture-beneficial-owner-details-on-the-master-s-portal) Accessed on 12 April 2023.

4. Government Gazette, Regulation No 11566 (Volume 693) 31 March 2023.

5. The Trust Property Control Act, Act No. 57 of 1988.