South Africa's Companies and Intellectual Property Commission (CIPC) has clarified the deadline for filing beneficial ownership information.
In a briefing note by ENSafrica, the law firm said the filing requirements were created by the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 and the Companies Act Amendment Regulations 2023 (GN R3444).
On 13 June 2023, the CIPC hosted a webinar to address confusion and concerns around the BO registry requirements.
It's worth noting that the previous six-month transitional period, which was initially communicated by the CIPC, is no longer applicable, the law firm said.
As per the CIPC FAQ page and Guidance Note 2 of 2023, some companies believed that they had up until their annual returns anniversary date to file their BO information, but the CIPC has also clarified that the BO filing requirements are currently in effect, and have been since the promulgation of the Regulations on 24 May 2023.
Lucinda Steenkamp, senior legal advisor: corporate legal at the CIPC, emphasised that this filing requirement has shifted from voluntary to compulsory:
"Once the Regulations were promulgated on the 24th of May [the filing requirement] moved from a voluntary basis to a compulsory basis. [All] of the corporate vehicles registered in the CIPC records [are] required to file their beneficial ownership information, securities register, and beneficial interest information, as applicable, now."
In addition, where BO information changes, companies are required to update their records within 10 days of the change occurring. If there are no changes, an annual update is required to confirm that the BO information has not changed, which is submitted with the annual return.
In short, it is crucial that all companies file their BO information as soon as possible. There is no transitional period, nor can companies wait until their annual returns anniversary date.
