Dear Clients,
We want to inform you about a critical update regarding the submission of beneficial ownership information for companies and close corporations.
As of 24 May 2023, per the General Laws (Anti-Money Laundering and Combatting Terror Financing) Amendment Act, 22 of 2022, all companies and close corporations must submit their annual returns to the Companies and Intellectual Property Commission (CIPC) along with their beneficial ownership declaration and security or beneficial interest register (as applicable). This must be done within 30 business days following their anniversary date.
Effective 01 July 2024, the CIPC will strictly enforce the filing of Beneficial Ownership Declarations (BO) with the Annual Returns. Companies and close corporations will not be able to file their Annual Return via any CIPC electronic platform unless the BO information is submitted and up to date. In addition, the Act mandates that Annual Financial Statements (AFS/FAS) be filed with the Annual Returns.
Failure to comply with these requirements may result in:
- Penalties for the late filing of Annual Returns.
- Enforcement action by the CIPC, including investigations into your business’s administration and governance processes, and the potential issuing of a compliance notice.
- Referral for deregistration and possible final deregistration due to non-compliance.
We urge you to ensure that your beneficial ownership information is current to avoid any disruptions or penalties.
If you have any questions or need assistance with your filings, please do not hesitate to contact us.
Best regards,
C2M Chartered Accountants
