Pretoria:South Africa's Trade, Industry and Competition Minister, Parks Tau, announced the implementation of a new initiative aimed at enhancing financial integrity and combating money laundering through the Companies and Intellectual Property Commission (CIPC) beneficial ownership register and inter-agency collaboration.

According to South African Government News Agency, Minister Tau introduced the Beneficial Ownership Disclosure Module for Law Enforcement Agencies at a launch event in Pretoria. This new model is designed to reveal ownership links and facilitate easier tracing for law enforcement officials.

Minister Tau highlighted that the CIPC-registered companies could be exploited through complex ownership structures intended to conceal the true owners. The new module provides accredited law enforcement users with real-time access to beneficial ownership information, including supporting documents, to promote transparency and accountability.

The initiative aims to halt financial crime by allowing investigators to trace connections between directors and entities within the CIPC database. The government is determined to maintain South Africa's exclusion from the grey list and prevent misuse of corporate structures for illicit activities.

Minister Tau emphasized that this effort involves collaboration with various government entities, including the Treasury, South African Revenue Service, Financial Intelligence Centre, South African Police Service, National Prosecuting Authority, and the private sector.

CIPC Commissioner Advocate Rory Voller stressed the importance of collaboration in achieving significant progress against financial crime. With the beneficial ownership module's upgrade, South Africa is preparing for a new cycle of mutual evaluation and effectiveness reporting due in October 2026 to the Financial Action Task Force. Voller urged the use of available tools to enhance investigations and mitigate risks related to money laundering and terrorist financing.

Since the register's opening on April 1, 2023, the CIPC has processed over three million beneficial ownership filings, conducted more than 618 investigations, and issued over 350 compliance notices to non-compliant entities or those providing false information.