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Draft Companies Amendment Regulations
- 23 March 2023
- Accounting
- South African Accounting Academy
The purpose of the new act is to address any shortcomings in the current legislation that deals with combatting money laundering and terrorist financing.
The draft Regulations were developed by the Minister of Trade, Industry and Competition, as a result of the General Laws (Anti-Money Laundering and Combating of Terrorism Financing) Amendment Act, 2022 (Act No. 22 of 2022), intended to improve the regulatory framework in order to maintain the integrity of South Africa’s financial system.
This aims to align South Africa with the standards set by the Financial Action Task Force (FATF).
Deadline for comments = 24 March 2023, which is 14 days from the Government Gazette GG48210 publication (dated 10 March 2023)
The General Laws Amendment Act amends 5 different Acts:
- The Companies Act, 2008
- The Financial Intelligence Centre Act, 2001
- The Financial Sector Regulation Act, 2017
- The Non-Profit Organisations Act, 1997, and
- The Trust Property Control Act, 1988.
The first phase of the GLAA began on 29 December 2022. This dealt with sections 9, 10, 16, 18 to 55, 59, and 62 to 65 of the Act.
The second phase is set to begin on 01 April 2023, and will involve sections 1, 3, 4, 5, 8, 11 to 15, 17, 56, 57, 58, 60, and 61 of the Act.
Click here to download the Regulations:
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 and independent reviewer, you need to be aware of legislative changes like the Draft Companies Amendment Regulations.
Relevance to Your clients:
- An entity (company or close corporation) has a duty to comply with the Companies Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
- Your clients should to be aware of legislative changes like the Draft Companies Amendment Regulations.
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.