This mindset is now a liability. Trustees who fail to adapt are exposing themselves to significant financial, legal, and personal risks.
This is not fearmongering. It’s a fact. South Africa’s greylisting by Financial Action Task Force (FATF) has triggered a regulatory and enforcement storm.
New legislation, enhanced enforcement, and a coordinated government effort has been designed to close the compliance gaps in the trust space.
The Financial Intelligence Centre (FIC)
The FIC is the new enforcement threat. You may be an accountable institution without realising it. Under the amended legislation, anyone who creates, manages, advises on, or transacts on behalf of a trust as a business is now an “accountable institution.” This includes accountants, attorneys, trustees, and administrators.
Even if you believe SARS or the Master can’t reach you, the FIC can and will. Backed by a significant budget allocation in 2025, the FIC has been tasked with actively investigating accountable institutions. It now has the money, the mandate, and the tools to enforce the law.
A trust service provider must register as an accountable institution under item 2 of Schedule 1 of the FIC Act, even if they are registered under a different item e.g. attorney. This means that you will need to:
- Register with the FIC;
- Maintain a Risk Management and Compliance Programme (RMCP);
- Perform ongoing customer due diligence on founders, beneficiaries, and co-trustees;
Fail to comply, and you face:
- Fines of up to R10 million (individuals);
- Fines of up to R50 million, but ongoing non-compliance can go up to R100 million for companies;
- Up to 15 years imprisonment.
SARS can now see what the Master sees
One of the most significant shifts is that SARS now has direct access to the Master’s Portal and they are able to cross-reference information.
Historically, SARS only knew about a trust if it was voluntarily registered for tax. That’s no longer the case.
If your trust is dormant but still on the Master’s records, SARS can see it. If your trust has never filed a tax return, SARS will know.
This means that all trusts must be registered as taxpayers with SARS, and all historical returns must be submitted to avoid these potentially punitive, retrospective administrative penalties. Since the 2023 tax year, SARS introduced an (uncomfortable) requirement for trustees to submit all trust resolutions and minutes of meetings with the annual trust tax return.
The Master’s Office is changing too and now has teeth.
Yes, the Master’s office still struggles with inefficiencies. But dismissing it entirely would be a mistake. The amended Trust Property Control Act (TPCA), in effect since 1 April 2023, gives the courts the legal authority to:
- Impose fines up to R10 million and/or 5 years in prison for non-compliance;
- Remove non-performing trustees;
- Enforce:
- Proper trust bank accounts (Section 10);
- Disclosure of trustee capacity to all accountable institutions (Section 10(2));
- Beneficial ownership registration (Section 11A);
- Recordkeeping, resolutions, and detailed reporting.
Trustees will also need to keep an accountable Institution register of every professional entity they deal with (estate agents, banks, lawyers, dealerships, etc.).
There is now an expectation for timely compliance, and an emerging tech-enabled infrastructure at the Master’s office. The Master has already started working with SARS and the FIC to cross-check trust compliance.
Other important considerations
- Update your trust deed. Many deeds are outdated and non-compliant. Ensure yours aligns with current legislation, FATF standards, and your actual intentions.
- Paperwork is no longer optional. Trusts must be run by resolution, with clear records for every decision. Failure to do so invites legal invalidity and penalties.
- The Beneficial Ownership Register is now legally required. If you’re still listed as a trustee, you are liable, even if inactive or “retired.”
It’s not just about compliance. It’s also about protection.
The myth that “no one checks” is dead. The FIC is active. SARS is connected. The Master through the courts has more control. Ignoring these shifts is no longer passive, it’s reckless.
Trustees must act now. Update, register, comply, and document or prepare for real and painful consequences.
Written and adapted by Linda Stonier – 24 July 2025
Disclaimer
The opinions expressed in this article are those of the author and do not necessarily reflect the views of Stone Wealth Management.