Trusts bill update open for public comment
The Dept of Justice and Constitutional Development has introduced updates regarding SA trusts
The Department of Justice and Constitutional Development in South Africa has introduced statutory updates concerning trusts. The primary purpose of these amendments is to deter illicit financial flows, tax evasion, and money laundering through the utilization of trusts. This new regulation aligns the nation with international standards set by the Financial Action Task Force (FATF).
The regulation of trusts bill introduces new obligations for trustees. They are now required to prepare annual financial statements and retain records for a period of five years following their departure from the role. This measure is intended to thwart money laundering and other illicit activities.
Advocate Tsietsi Sebelemetja, Chief Director of Legislative Development at the Department, announced that the bill is currently open for public comment until September 11th. Sebelemetja emphasized the importance of safeguarding beneficiaries in trusts. He highlighted the potential misuse of trusts, particularly in cases where land reform is involved. He also pointed out the risk of abuse when trusts are established in situations involving accidents, legal claims, or medical damages.
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