MPs approve Trust Control bill amendments
22 Dec 2024
Members of Parliament have agreed to the proposed amendments to the Trust Properties Control Amendment Bill of 2024 as it aligns to international recommendations.
When presenting the bill in Parliament, Minister of Justice and Correctional Services, Mr Nelson Ramaotwana said the Trust Properties Control Act was repealed and re-enacted in 2022 to give effect to the recommendations from the assessment of the Eastern and Southern Africa Anti-Money Laundering Group (ISAMLAG) on the country’s implementation of the Financial Action Task Force recommendations.
Mr Ramaotwana said following the re-enactment of the act, the country was subjected to an assessment by ISAMLAG and was rated non-compliant and partial compliant in some areas.
He said the country was rated non-compliant primarily due to failure to conduct a risk assessment consistent with the requirement of the recommendations as well as failure to adopt measures aimed at mitigating the risks exposed to non-profit making organisations that were likely to be abused for terrorism financing.
Additionally, he said the country underwent a supplementary peer review October last year on the implementation of the standard on transparency and exchange of information, on request, and conducted by the global forum. He said the report recommended that Botswana ensure up-to-date information on foreign trusts not holding property in Botswana.
Also, the National Coordinating Committee on Financial Intelligence on December 13, 2023 in its recommendation, requested that Trust Property Control Act be amended to include fit and proper procedures in the registration of trust service providers among others.
Mr Ramaotwana said the Trust Properties Control Amendment Bill of 2024 therefore, sought to address the deficiencies in the Act, so that the country complied with FATF recommendation, comply with the recommendations of the second national risk assessment and to also comply with the recommendations of supplementary peer review on the implementation of the standards on transparency and exchange of information on request conducted by the Global Forum.
Furthermore, he said the bill among others inserted a new paragraph that empowered the Master of the High Court to refuse to register a trust if its name was similar to that of another trust, if a trust’s instrument did not meet the requirements of the Act, and if the founding trustees did not meet the requirements of the act.
The master would also be empowered to verify information submitted by a trust on a risk-based approach. The bill introduces new sections to make provision for registration of trust service providers, including production of fit and proper procedures. Mr Ramaotwana said bill also provided for the master's power to impose administrative penalties among others.
Although majority of the MPs agreed to the amendment, Chobe MP, Mr Simasiku Mapulanga expressed reservation on some of the amendments in the bill saying its requirements were tedious and would discourage community members from volunteering to be members of trusts.
Further, he said the bill had potential of even leading to the collapse of trusts, adding that the intention of the bill appeared to be depriving communities of their trusts.
While Molepolole South MP, Mr Shima Monageng supported the bill saying trusts were important because they promoted the spirit of self-reliance but ought to be accountable.
If left unchecked, he said some trustees could use them for self-enrichment and other illicit activities, adding that the country as part of the global village, should comply with international standards. Ends
Source : BOPA
Author : Bonang Masolotate
Location : Gaborone
Event : Parliament
Date : 22 Dec 2024
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