CIPC: Notice of Beneficial Ownership non-compliance

CIPC: Notice of Beneficial Ownership non-compliance

• 03 September 2024
• CIPC
• South African Accounting Academy

The CIPC sincerely apologizes for the inconvenienced caused by the e-mail sent in error to compliant entities and wishes to advise the companies and CCs that have complied with the BO filing requirements to ignore the notice erroneously emailed.

However, the CIPC is urging the companies, external companies and close corporations that have not filed BO information to do so within 7 business days of receipt of the e-mail notice.

Click here to download Notice 59 of 2024:

https://www.cipc.co.za/wp-content/uploads/2024/08/Notification-of-BO-Non-compliance-Error-Notice.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Companies Act and Regulations 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.
• As an auditor, independent reviewer and accountant you need to consider the impact of the Companies Act Regulations on your service offerings, as well as on your client’s beneficial ownership filing obligations – more specifically, the enforcement of Beneficial Ownership filings and securities registers).

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 – and more specifically, the enforcement of Beneficial Ownership filings and securities registers.

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