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CIPC: The need for multi-factor authentication for director amendments
- 16 January 2024
- Management
- South African Accounting Academy
On the 4th of December 2023, CIPC implemented an identity verification and multifactor authentication for director amendments. As a registrar of companies and a regulator of such, the CIPC has to exercise stringent controls and authentication processes to mitigate the risk of unauthorised director amendments and remove vulnerabilities that enable corruption and corporate crime.
The CIPC is not experiencing challenges with the system as has been purported. The implementation has been tested vigorously to ensure its successful implementation. Since the implementation of the multi-factor authentication in December 2023, the CIPC processed over 8000 applications. The CIPC encourages customers to ensure their contact details are up to date before filing a Director Amendment to ensure a smooth and secure process.
Click here to download Media Release 1 of 2024:
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 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 and that you are aware of the latest media statements issued by CIPC as the regulator.
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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 so that companies continue to meet their compliance obligations.
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 and to be aware of the latest media statements issued by CIPC as the regulator.