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CIPC: Beneficial ownership register – Reviewer system
- 27 February 2024
- CIPC
- South African Accounting Academy
Hand in hand with the review process is the concept of allowing for the re-filing of incorrect or incomplete submissions, providing corporate South Africa with an opportunity to correct any mistakes and ensure compliance with the legislation. Beneficial ownership filings rejected/queried for whatever reason, may thus be re-filed. Filers will be notified via e-mail of any need for re-filing, once applications have been examined.
It remains the responsibility of each entity to ensure that they submit accurate, complete, and verified BO information to the Commission. Providing false and inaccurate beneficial ownership information is an offense in terms of the Companies Act, 71 of 2008 (as amended) and enforcement action coupled with appropriate sanctions will apply if such is found.
The FATF (Financial Action Task Force) recommendations about beneficial ownership transparency within South Africa, resulted in amendments to the Companies Act, 71 of 2008 (amongst other pieces of legislation), brought about by the General Laws (anti-money Laundering and Combatting Terrorism Financing) Amendment Act, 22 of 2022.
Subsequently, the CIPC launched its Beneficial Ownership Register on 1 April 2023, allowing for all corporate vehicles registered with the CIPC to file their beneficial ownership declarations. The complexity of the beneficial ownership concept necessitated the CIPC to allow for a platform whereby BO filings could be reviewed and examined.
The CIPC remains committed to playing its part in the journey of removing South Africa from the FATF grey list and providing an opportunity for compliant corporate vehicles to re-file where bona fide mistakes were made, assisting in moving South Africa closer to realizing that goal.
Click here to download Notice 12 of 2024:
https://www.cipc.co.za/wp-content/uploads/2024/02/NOTICE-TO-CUSTOMERS-BACK-OFFICE-RE-FILING.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
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The Companies Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
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As an auditor, independent reviewer and accountant, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.
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Where you perform these compliance tasks on behalf of your client, you need to ensure that you comply with all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.
Relevance to Your Clients:
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An entity (company or close corporation) must comply with the Companies Act, and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.