Tag: Financial Action Task Force (FATF)

ZAR 475 million, ZAR 210 million, and ZAR 59 million are not lottery jackpots. Instead, these represent the significant administrative penalties imposed recently. During 2024, the Financial Sector Conduct Authority (FSCA) and Prudential Authority (PA)(together, the Regulators) imposed these penalties on various entities.

The Companies and Intellectual Property Commission (CIPC) has introduced new obligations for reporting beneficial ownership information. The deadlines are tied to each company’s date of inception. Businesses must declare their beneficial owners within 30 days of their anniversary date, similar to annual return filings.

Television series like Breaking Bad and Ozark reflect the public’s fascination with money laundering and its criminals. Yet, in reality, laundering is far more sophisticated, dangerous, and far-reaching than the fictional exploits of Walter White or Marty Byrde. Unregulated gambling and financial crime are increasingly interconnected, providing criminals with new avenues to launder illicit funds globally.

The impact of excessive government regulation and control is the harm to businesses and employees caused by excessive workloads and stress. This reduces productivity, morale and overall efficiency in public services. The state is intended to function in an efficient, economical and effective manner.

On 27 June 2024, the South African Revenue Service (SARS) announced its enhanced Beneficial Ownership disclosures for the 2024 Filing Season. Not even 24 hours later, the Companies and Intellectual Property Commission (CIPC) issued a media release enforcing beneficial ownership (OB) declaration, to be able to file annual returns. This may simply be a compliance coincidence, but more likely a strategic move to eradicate non-compliance for companies, trusts, and partnerships, on all levels.

Companies can leverage identity platforms to create internal Ultimate Beneficial Owner (UBO) databases. What are the risks of unintentionally transacting with a shady shell company or funds gained from criminal activities? In South Africa, it's substantial.

In today's dynamic business environment, entrepreneurs are at the forefront of reshaping industries. They challenge conventional norms, redefine traditional practices and drive forward innovation. Yet, to turn their groundbreaking ideas into reality, entrepreneurs often need financial support. This is where funding becomes pivotal, enabling businesses to scale their operations and make their mark on the world.

Despite being viewed as an administrative and burdensome expense with excessive paperwork sometimes causing potential delays to establishing business relationships and concluding transactions, Financial Intelligence Centre Act (FICA) compliance is more crucial than ever.

Gone are the days of box-ticking. The Financial Sector Conduct Authority (FSCA) has recently imposed administrative sanctions on two financial services providers (FSPs), in each case for failing to comply with certain provisions of the Financial Intelligence Centre Act (FICA). 

Locally, as trust compliance becomes more complex and trusts become more costly to administer, their value is increasingly being questioned. However, a trust’s worth extends beyond its financial benefits, and as such, they are still very relevant tools to use in a well-crafted estate plan, especially for high-net-worth families.