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Automating Beneficial Ownership Compliance for Multinational Accounting Firm

  • Writer: BluShift
    BluShift
  • Feb 17
  • 2 min read

Updated: Mar 5


OVERVIEW

In response to the evolving regulatory landscape in South Africa, a multinational accounting firm were faced with a significant compliance challenge.


The introduction of the Beneficial Ownership reporting requirement, as outlined in the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022, placed additional obligations on companies to report and maintain an accurate register of beneficial owners.


These amendments, effective from 1 April 2023, require entities to file beneficial ownership information with the Companies and Intellectual Property Commission (CIPC), with penalties imposed for non-compliance.



OBJECTIVE

Responsible for managing beneficial owner details across more than 5,000 entities, struggled to keep pace with these demands. Despite their initial efforts using a team of Chartered Secretaries, they managed to consolidate information for fewer than 200 entities over the course of three months. It became clear that they required a more efficient and scalable solution to meet these new legal requirements and avoid penalties.


  • AutomateDataConsolidation: Develop a system to automatically gather and confirm beneficial owner details from multiple sources.

  • Scale: Manage the verification process for over 5,000 entities.

  • Create a Unified Database: Ensure all beneficial ownership information was consolidated into a comprehensive, up-to-date dataset.

  • Ensure FICA Compliance: Meet all obligations under the Financial Intelligence Centre Act (FICA).

  • Avoid Penalties: Complete the project within the required timelines to prevent financial penalties.


SOLUTION

The firm turned to BluShift Consulting, which proposed a solution leveraging Microsoft Power Automate. This solution addressed the need for efficient data management and compliance with FICA regulations. The key components of the solution included:


  • Automated Data Consolidation: The system automated the collection and consolidation of data from various sources, including the CIPC registry, the FIC Sanction List, and GreatSoft, into a unified dataset.

  • Efficient Data Upload and Update Processes: BluShift implemented workflows that allowed for the seamless upload of data into FICA forms and enabled clients to update their details when required.

  • 24/7ProcessManagement: The automated processes were designed to operate continuously, ensuring the project was completed on time without manual intervention


OUTCOMES

The impact of BluShift Consulting’s solution was significant, delivering results that far surpassed initial manual efforts.


  • Efficiency Gains: By automating the data consolidation process, the firm was able to complete the verification of over 5,000entities in just one month. Previously, a team of five had taken three months to consolidate fewer than 200 entities.

  • Compliance Assurance: The solution ensured that all FICA compliance obligations were met, successfully avoiding any penalties for non-compliance.

  • Comprehensive Database: A single, holistic database was created, serving as the authoritative source for all beneficial owner information.

  • Cost and Time Savings: The project was completed on time and within budget, demonstrating the cost-effectiveness of automation over manual labour.


CONCLUSION

This case study highlights the transformative power of automation in addressing regulatory challenges.


By adopting an automated solution through Microsoft Power Automate, BluShift Consulting enabled the firm to not only meet their compliance requirements but also

streamline a previously laborious process.


The success of this project underscores how businesses can leverage technology to enhance operational efficiency, reduce costs, and ensure compliance in an increasingly regulated environment



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