Unveiling corporate transparency
The Financial Action Task Force has recently greylisted South Africa due to concerns over money laundering. This has significantly impacted businesses in the country, causing tighter controls to be put in place. SARS and the CIPC are working together to create a register that provides more detailed information about organisations’ control and beneficial ownership properties, which means that companies and trusts need to supply their beneficial information to maintain compliance.
If you’re a business owner, you’re probably aware of the Companies and Intellectual Property Commission (CIPC) deadline to disclose a beneficial ownership register. This deadline has already passed and is a significant step towards greater transparency in South African corporate governance.
Challenges of beneficial ownership registration deadline
However, many businesses are facing challenges with this new requirement. The administrative burden can be overwhelming, particularly for companies that manage several legal entities. Identifying the beneficial owners among large numbers of companies can be like navigating a labyrinth. Keeping this information updated also requires continuous monitoring and reporting, which can be a significant challenge for corporations with multiple subsidiaries that experience changes in ownership and control.
But don’t worry; there are ways to navigate these challenges and ensure compliance. Corporations should start with a thorough due diligence process to map out their corporate family tree and identify beneficial owners. Establishing robust internal processes and systems to ensure ongoing compliance is also essential. Regular audits and checks are necessary to maintain an accurate beneficial ownership register.
At Konsise, we’re working with SARS and the CIPC to create software solutions that make it easier for corporations to maintain accurate, beneficial information and ensure 100% compliance. With our help, businesses can demonstrate responsible corporate governance and avoid penalties while building trust with investors, customers, and stakeholders.
Ultimately, being open about corporate ownership structures is a challenge that corporations should willingly embrace. It’s not just a compliance requirement but also an ethical responsibility and a matter of reputational risk. By taking a proactive approach and adopting software solutions, businesses can turn this challenge into an opportunity to demonstrate their commitment to transparency and responsible corporate governance.
