Page 14 - Nexia SAB&T Trust Guide 2024

AMENDMENTS TO THE TRUST PROPERTY CONTROL ACT:
1 APRIL 2023

The General Laws (Anti-Money Laundering and Combating Terrorism Financing)
Amendment Act (no. 22 of 2022) came into force on 1 April 2023, and
amends the Trust Property Control Act [as well as the Nonprofit Organisations
Act (no.71 of 1997), the Financial Intelligence Centre Act (no.38 of 2001),
and the Companies Act (no.71 of 2008)]. It is hereinafter referred to as “the
Amendment Act”.
The amendments to the Trust Property Control Act are significant – the intention
is to increase the disclosure requirements on trustees, to prevent the misuse of
trusts, and to combat money laundering, terrorist financing and other financial
crimes.
The amendments comprise:
■ The insertion of the definition of ‘‘accountable institution’’
■ having the same meaning as defined in section 1(1) and Schedule 1 to
the Financial Intelligence Centre Act. An accountable institution includes,
amongst others, attorneys, estate agents, a banking institution, long term
insurers, investment brokers, and any trust and company service provider.
■ Increased disclosure requirements for trustees in relation to an accountable
institution
■ the Amendment Act provides that a trustee must disclose their position
as trustee to any accountable institution with which the trustee engages
in that capacity and must make it known to the accountable institution
that the relevant transaction or business relationship relates to trust
property [* see page 18 for penalties and offences relating to non-
compliance of this section].
■ Section 11 of the Trust Property Control Act provides that a trustee is
required to:
(a) indicate clearly in his bookkeeping the property which he holds in his
capacity as trustee;

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