{"id":1202,"date":"2023-06-08T11:49:38","date_gmt":"2023-06-08T09:49:38","guid":{"rendered":"https:\/\/www.axiaconsulting.co.za\/?p=1202"},"modified":"2026-05-14T08:19:02","modified_gmt":"2026-05-14T06:19:02","slug":"trust-legislation-are-you-compliant","status":"publish","type":"post","link":"https:\/\/www.axiaconsulting.co.za\/af\/trust-legislation-are-you-compliant\/","title":{"rendered":"Trust Legislation Amended Deadline 1 April 2023 : Are you compliant?"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">Are you part of a Trust? We want to let you know about a recent change in legislation. NOT knowing about this change could result in a fine of up to R10,000,000, 5 years of imprisonment\u2026or both. So yes, it is hugely important to be aware of this.<\/span><\/p>\n<h2><span style=\"font-family: 'Calibri light';\">Let\u2019s talk Trusts<\/span><\/h2>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-family: 'Calibri light';\"><span style=\"font-size: 14px;\"><em>&#8220;A trust is a legal arrangement whereby control over property is transferred to a person <\/em><\/span><span style=\"font-size: 14px;\"><em>or organisation (the trustee) for the benefit of someone else (the beneficiary).&#8221; &#8211; <\/em><\/span><span style=\"font-size: 14px;\"><em>www.gov.za<\/em><\/span><\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">Trusts have been around for over two centuries. South Africa introduced Trusts when the Cape became a British Colony. Since then, it has provided individuals with greater estate control and flexibility in wealth distribution. There are many benefits to having a Trust. If you ever wanted to run through those we would be happy to chat further. That isn\u2019t what this article is about though. There is unfortunately a dark side to Trusts, and that involves Money Laundering.<\/span><\/p>\n<h2><span style=\"font-family: 'Calibri light';\">Money Laundering<\/span><\/h2>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">For the longest time, it was only necessary to have the details of the Trustees, Beneficiaries and the Founders of a Trust (The Trust Property Control Act, 1988 (Act No. 58 of 1988). Trusts did not require beneficial owners to provide their details. Criminals exploited this loophole by utilising Trusts as a means to acquire assets and launder money.<\/span><\/p>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">In March 2023, legislators passed an amendment that closed the loophole, imposing a deadline of 1 April 2023. It is crucial to be aware of this change as it applies to EVERYONE involved in a Trust, and ignorance of the changes will not absolve you of guilt.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-family: 'Calibri light';\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1204\" src=\"https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-1024x683.jpg\" alt=\"Trust legislation\" width=\"600\" height=\"400\" srcset=\"https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-1024x683.jpg 1024w, https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-300x200.jpg 300w, https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-768x512.jpg 768w, https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-1536x1024.jpg 1536w, https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-2048x1365.jpg 2048w, https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-18x12.jpg 18w, https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-80x53.jpg 80w, https:\/\/www.axiaconsulting.co.za\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7714795-600x400.jpg 600w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/span><\/h2>\n<h2><span style=\"font-family: 'Calibri light';\">Amendment to the Trust Legislation<\/span><\/h2>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">The Trust Property Control Act, 1988 (Act No. 58 of 1988) (\u201cthe Act\u201d) was recently amended by the General Laws (Anti Money-Laundering and Combating Terrorism Financing) Amendment Act, 2022 (Act No. 22 of 2022) (\u201cthe Amendment Act\u201d), and the point of this change was to keep track of the Beneficial Owners of Trusts.<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-family: 'Calibri light';\"><span style=\"font-size: 14px;\"><em>\u201cBeneficial owner\u201d means a natural person who directly or indirectly ultimately owns the <\/em><\/span><span style=\"font-size: 14px;\"><em>relevant trust property, natural person who benefits from the trust property or a natural person <\/em><\/span><span style=\"font-size: 14px;\"><em>who exercises effective control of the administration of the trust arrangements that are <\/em><\/span><span style=\"font-size: 14px;\"><em>established pursuant to a trust instrument. These provisions are intended to ensure <\/em><\/span><span style=\"font-size: 14px;\"><em>transparency with regard to ownership of trust property and to assist in the investigation of <\/em><\/span><span style=\"font-size: 14px;\"><em>financial crimes. &#8211; <span style=\"color: #0000ff;\"><b><a style=\"color: #0000ff;\" href=\"https:\/\/www.justice.gov.za\/m_statements\/2023\/20230504-Trusts-AmendmentSummary.pdf\">Read more<\/a><\/b><\/span><\/em><\/span><\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">To put this into simpler terms, there will ALWAYS be a natural person behind the ownership of all legal entities or assets in a trust even if that person is behind a few layers of legal entities. That person (or people) is ultimately the one who pulls the strings and reaps the rewards hence the BENEFICIAL Owner. The beneficial ownership register of the trust must now legally record that person&#8217;s details. Most cases involve multiple beneficial owners. Keep in mind that listing is mandatory for any person who is involved in a Trust, regardless of their role as a Founder, Trustee, or Beneficiary.<\/span><\/p>\n<h2><span style=\"font-family: 'Calibri light';\">What do you need to do?<\/span><\/h2>\n<p><span style=\"font-family: 'Calibri light';\"><span style=\"font-size: 14px;\">First, identify all beneficial owners in the Trust, and then collect ID copies of these individuals, either by yourself or with the help of the Trust Administrator. The Administrator will need Power of Attorney to collect this information. <strong><em>NB to note \u2013 your Administrator is NOT <\/em><\/strong><strong><em>automatically your accountant or independent trustee. Please don\u2019t assume that they are on top <\/em><\/strong><strong><em>of this.<\/em> \u00a0<\/strong>A trust administrator needs to be engaged in that specific role. It is not the responsibility of <\/span><span style=\"font-size: 14px;\">accountants or independent trustees to administer the trust unless specifically engaged in that<\/span><\/span><\/p>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">Once that\u2019s done, click on this <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/docs.google.com\/forms\/d\/e\/1FAIpQLSe4v2Nqi2wpSZn3oyozs1cHyv0CGXJr5kEKGSoCAHC3wCaQmg\/viewform\"><strong>link<\/strong><\/a><\/span> from the justice.gov.za. website and complete the form. Submit the form on the Master&#8217;s portal.<\/span><\/p>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">At aXia Consulting, our tagline is &#8220;Adding Value&#8221;.\u00a0 We stay updated on financial regulations and changes to provide that knowledge to our clients. If you find the Trust legislation amendments overwhelming, reach out to us at <a href=\"mailto:admin@axiaconsulting.co.za\" target=\"_new\" rel=\"noopener\">admin@axiaconsulting.co.za<\/a> . We will be happy to schedule a free consultation. With 50 years of combined expertise, we are here to help and take the burden off your shoulders.<\/span><\/p>\n<p><span style=\"font-size: 14px; font-family: 'Calibri light';\">The aXia Team<\/span><br \/>\n<span style=\"font-size: 14px; font-family: 'Calibri light';\"><a href=\"https:\/\/www.axiaconsulting.co.za\/af\/\"><span style=\"color: #0000ff;\">www.axiaconsulting.co.za\/<\/span><\/a><\/span><\/p>\n<hr \/>\n<p><span style=\"font-size: 10px; font-family: 'Calibri light';\">Content created by <a href=\"https:\/\/brandnarrative.co.za\/\">Brand Narrative<\/a><\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"Are you part of a Trust? We want to let you know about a recent change in legislation. NOT knowing","protected":false},"author":2,"featured_media":1204,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[],"class_list":["post-1202","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-small-business-advice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trust Legislation Amended Deadline 01\/04\/23 : Are you compliant?<\/title>\n<meta name=\"description\" content=\"If you are part of a Trust, not knowing about this change could result in a fee of R10million, 5 years of imprisonment or BOTH.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.axiaconsulting.co.za\/af\/trust-legislation-are-you-compliant\/\" \/>\n<meta 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