Page 52 - Nexia SAB&T Business in South Africa Guide 2024

The information required to be filed and uploaded to CIPC relates to “beneficial
ownership” of the entity – which means an individual who, directly or indirectly
ultimately owns that company or exercises effective control of that company (i.e.,
a “warm body”). Where any of the securities of a company are held by one person
for the beneficial interest of another (indirect ownership/nominee shareholder),
a record of each “ultimate” beneficial owner of the company must be filed, by
means of a “Beneficial Interest Register”. For example, where a trust or another
company holds a beneficial interest (e.g., shares) in an entity, then those natural
persons who ultimately benefit (e.g., the beneficiaries/trustees of the shareholder
trust, or the individuals who hold shares in the shareholder company) will need to
be disclosed in this “Beneficial Interest Register”. In effect, a “drill down” exercise
– to get to a “warm body”. Failure to comply with this obligation will result in a
Compliance Notice being issued by CIPC, and possible penalties.

Financial Intelligence Centre Act, 38 of 2001 (FICA)
Amendments to FICA include expanding the objectives and powers of the
Financial Intelligence Centre (FIC or the Centre) and technical amendments on
Customer Due Diligence (CDD) and Politically-Exposed Persons (PEPs).
In addition, Schedule 1 of the FIC Act has been amended, which significantly
increased the number of sectors listed as accountable institutions. This improves
the FIC’s ability to obtain information from a broader range of financial and
nonfinancial institutions and crypto asset service providers (CASPs). Schedule 1
now includes:
■ Co-operative banks.
■ Legal practitioners.
■ Credit providers.
■ Crypto asset service providers (CASPS).
■ The South African Mint Company.
■ Trust and company services providers (TCSP) – for example an accounting or
auditing practice that is also a “trust and company service provider” (in other
words the practice provides services such as trust and company formations,
business and tax advice to clients, and independent trustee services on a trust).
■ Payment clearing service operators.
■ High-value goods dealers (moved from schedule 3).

50