Office-Bearer Disqualification: New Regulations to Protect Non-Profit Organisations
In a bid to enhance transparency and accountability, the government has introduced new regulations aimed at disqualifying office-bearers who have been found guilty of certain offences or have engaged in misconduct. The regulations, which came into effect yesterday, are designed to protect non-profit organisations (NPOs) from individuals who may pose a risk to their operations.
Disqualification Period and Extension
Under the new rules, any person who has been removed from an office of trust due to misconduct involving dishonesty, or has been convicted of certain offences, will be disqualified from serving as an office-bearer for up to five years. The disqualification period can be extended by a court on application by the Directorate, if necessary to protect the public.
Notification and Prohibition
The regulations also require NPOs to notify the Directorate of any office-bearers who have been disqualified, and prohibits them from knowingly permitting such individuals to serve or act as an office-bearer.
Immediate Cease of Office-Bearer Role
According to the new rules, any person who becomes ineligible or disqualified while serving as an office-bearer will immediately cease to be entitled to continue in that role. Office-bearers can also be removed by the director if they fail to perform their duties satisfactorily or comply with the requirements of the Act.
Strengthening Oversight and Governance
The amendments to the Non-Profit Organisations Act and the Financial Intelligence Centre Act aim to strengthen the oversight and governance of NPOs, ensuring that they operate in a transparent and accountable manner.
Revised Definitions
In addition to the new regulations on office-bearer disqualification, the government has also revised certain definitions in the Financial Intelligence Centre Act. The revised definitions include changes to the definition of:
- Beneficial Owner: To improve the understanding and application of this term, which is critical in preventing money laundering and combating terrorism financing.
- Domestic Prominent Influential Person: To enhance transparency and accountability within NPOs.
- Foreign Prominent Public Official: To improve the understanding and application of this term, which is critical in preventing money laundering and combating terrorism financing.
Public Service Announcement
These new regulations and revised definitions are designed to enhance transparency and accountability within non-profit organisations. We urge all NPOs to familiarise themselves with the changes and ensure compliance with the new rules.
For more information on the new regulations and revised definitions, please contact the Directorate or visit our website at [website URL].