This notice is meant to clarify any confusion about payment referencing and facilitating smoother transactions.
When initiating a direct deposit/EFT, the use of a correct reference (i.e., customer code) is extremely important. Without the correct reference, CIPC cannot allocate the deposited funds to the correct customer, thus leaving the deposits unallocated. To limit the number of unallocated funds, CIPC urges customers to use correct references. For instance, if your CIPC customer code is “ABZXCR,” use it as a reference for deposits/EFT. Only the customer code must be in the reference field of the deposit or EFT form.
Most banks have fields for “My reference” and “Beneficiary reference” when making direct deposits/EFT. The correct reference (i.e., the customer code) must be entered in the Beneficiary reference field. The “My reference” field is for your own records.
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 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 and that you are aware of the latest media statements issued by CIPC as the regulator.
Company Secretarial staff play a critical role in bridging the gap between entities and CIPC. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and company secretarial practitioners to keep abreast of such changes in so that companies continue to meet their compliance obligations.
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 and to be aware of the latest media statements issued by CIPC as the regulator.
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