REGULATION OF BENEFICIAL OWNERSHIP IN SOUTH AFRICA AND ZIMBABWE

Abstract

Criminals despise transparency. Beneficial ownership transparency measures are aimed at ensuring that the structure of corporate vehicles is evident and that their real owners do not hide behind the corporate veil. South Africa and Zimbabwe have been struggling to prevent and combat money laundering, corruption and tax crimes. Competent authorities in both countries are starting to appreciate the importance of beneficial ownership transparency measures in the fight against economic crime. This paper examines whether South Africa and Zimbabwe have made progress in establishing effective legal frameworks on the beneficial ownership of legal persons and legal arrangements. It discusses the Financial Intelligence Centre Amendment Act 1 of 2017 which establishes beneficial ownership transparency measures for South Africa. It goes on to discuss the Zimbabwean situation regarding beneficial ownership and its regulation. Lastly, it makes certain recommendations concerning the beneficial ownership regimes of both countries.