Media Statement 4 of 2024: CIPC to enforce beneficial ownership declaration with annual return filings for companies and close corporations
Published: 28 June 2024
On 24 May 2023, CIPC implemented the filing of Beneficial Ownership information annually or within 10 days of a change occurring along with the Annual Return of the company or close corporation. This was introduced due to the amendments brought by the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Amendment Act 22 of 2022, which amended the Companies Act 71 of 2008 (“the Act”).
Initially, customers were able to file their Annual Returns without having a Beneficial Ownership declaration for the entity, however, CIPC is now strictly enforcing Beneficial Ownership declarations to be done by companies and close corporations with effect from 1 July 2024. CIPC will introduce a hard-stop functionality on Annual Return filings that will prevent companies and close corporations from filing Annual Returns unless they have filed their Beneficial Ownership information for that calendar year.
Companies and close corporations that do not comply with this can face many consequences such as:
Penalties for late Annual Return filings
Enforcement action may be taken by CIPC
Referral for deregistration
Final deregistration
Media Statement 4
On 24 May 2023, CIPC implemented the filing of Beneficial Ownership information annually or within 10 days of a change occurring along with the Annual Return of the company or close corporation. This was introduced due to the amendments brought by the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Amendment Act 22 of 2022, which amended the Companies Act 71 of 2008 (“the Act”).
Initially, customers were able to file their Annual Returns without having a Beneficial Ownership declaration for the entity, however, CIPC is now strictly enforcing Beneficial Ownership declarations to be done by companies and close corporations with effect from 1 July 2024. CIPC will introduce a hard-stop functionality on Annual Return filings that will prevent companies and close corporations from filing Annual Returns unless they have filed their Beneficial Ownership information for that calendar year.
Companies and close corporations that do not comply with this can face many consequences such as:
Penalties for late Annual Return filings
Enforcement action may be taken by CIPC
Referral for deregistration
Final deregistration
Media Statement 4
Updated on: 17/07/2024
Thank you!