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CIPC: Beneficial Ownership reporting – demo version shared
- 03 April 2023
- Accounting
- South African Accounting Academy
The impact of beneficial ownership reporting on companies and how to guarantee that BO information is utilized properly by all stakeholders were the topics of a breakfast discussion sponsored by CIPC - Companies and Intellectual Property Commission (a member of the dtic Group) on 30 March 2023.
According to the modified Companies Act Regulations, CIPC is required to create and operate a Beneficial ownership registry.
The demo version of a new platform was shared that will be used by entities to enter their BO information. Entities are provided 6 months to ensure that they comply.
In order to ensure success, the implementation needs to follow an ongoing interactive process with extensive stakeholder consultation.
As stated in a previous SAAA Alert dated 3 March 2023, CIPC issued a general customer Notice https://www.cipc.co.za/wp-content/uploads/2023/03/General-Beneficial-Ownership-Notice_01-March-2023-Final.pdf
Refer to the CIPC Customer Notice dated 16 March 2023 https://www.cipc.co.za/wp-content/uploads/2023/03/Customer-Notice-on-written-comments-to-Companies-Act-draft-regulations_BO-register_March_23.pdf
Click here to download the General Laws Amendment Bill:
https://www.gov.za/sites/default/files/gcis_document/202212/47815anti-moneylaunderingact22of2022.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- 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.
- 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.
- 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.
- Your clients will also have to comply with the resultant General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act regarding anti-money laundering measures to be taken.
Relevance to Your clients:
- An entity (company or close corporation) has a duty to comply with the Companies Act, and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.
- Your clients will also have to comply with the resultant General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act regarding anti-money laundering measures to be taken.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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https://cpd.accountingacademy.co.za.