Enhancing Anti-Money Laundering Laws for Beneficial Ownership Transparency

Presentation by AmaBhungane and Corruption Watch focuses on amending laws to define and disclose beneficial ownership in South Africa, emphasizing the need for clear definitions, low thresholds, and a risk-based approach. Recommendations include a consolidated register, stronger sanctions for compliance, and proactive disclosure of ownership information.

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• Money Laundering
• Beneficial Ownership
• Anti-Corruption
• Transparency
• South Africa

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Uploaded on May 13, 2024 | 0 Views

Presentation Transcript

1. AmaBhungane and Corruption Watch Presentation on General Laws (Anti-Money Laundering and Terrorism Financing) Amendment Act Caroline James and Sanan Mirzoyev

2. BENEFICIAL OWNER UNDER THE FIC ACT OO 2021 Guideline South Africa s FIC 2017 definition Beneficial owner must be a natural person Definitions should cover all forms of ownership and control (including that ownership can be held directly or indirectly) A single definition in primary law The definition should be broad Low thresholds Risk-based approach with a sectoral focus Clear prohibitions

3. BENEFICIAL OWNER UNDER THE BILL OO 2021 Guideline South Africa s FIC 2017 definition Beneficial owner must be a natural person Definitions should cover all forms of ownership and control (including that ownership can be held directly or indirectly) A single definition in primary law The definition should be broad Low thresholds Risk-based approach with a sectoral focus Clear prohibitions

4. RECOMMENDATIONS A single definition of beneficial owner in primary legislation. A consolidation of beneficial ownership registers: BODS. The prohibition of nominee arrangements.

5. RECOMMENDATIONS Strengthen administrative sanctions to improve compliance. Disqualifications for trustees and NPO directors be commensurate to other legislation. Publicly-available registers.

6. DISCLOSURE OF BENEFICIAL OWNERSHIP DATA Consolidated register, easily accessible and usable No violation of POPIA Unambiguously identifiable IMPLEMENTATION monitoring corruption and financial crimes

7. DISCLOSURE OF BENEFICIAL OWNERSHIP DATA PROACTIVE DISCLOSURE ACCESS TO INFORMATION Annual disclosure of beneficial ownership information received in annual returns Disclosure of updated information received - on a prescribed schedule Regime for individuals to apply for access to additional information

8. AMENDMENTS TO NPO ACT Consultation with NPO Sector Threshold for registration as NPC with CIPC or PBO with SARS Compulsory registration with DSD will be ineffective and impractical

9. THANK YOU