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Definition
Administrative non-compliance penalties refer to financial penalties or sanctions imposed on individuals or businesses by authorities or government agencies for failing to follow administrative requirements, regulations, or statutory obligations.
What is an administrative non-compliance penalty?
These penalties are typically charged for administrative infractions or breaches that do not involve criminal conduct but result from oversight or failure to comply with procedural or regulatory requirements set forth in South African laws and regulations.
Administrative non-compliance can encompass a wide range of infractions, including late filing of regulatory reports or documents, failure to maintain proper records, submission of inaccurate or incomplete information, or violations of administrative procedures outlined in specific statutes or regulatory guidelines.
The structure and severity of administrative penalties may vary depending on the nature of the infraction, the regulatory authority involved, and the specific laws or regulations violated. Penalties can include monetary fines, administrative sanctions or suspension of licences or permits.
Regulatory authorities may disclose information about administrative non-compliance penalties to the public as part of their transparency efforts. Public disclosure serves to inform stakeholders, investors, and the general public about regulatory compliance issues, enforcement actions taken against non-compliant parties, and the consequences of regulatory non-compliance.
Example of an administrative non-compliance penalty
An example of an administrative non-compliance penalty could involve a business failing to submit its annual financial reports to the relevant regulatory authority by the specified deadline. As a result of this oversight, the regulatory authority may charge a financial penalty against the business for its failure to comply with the reporting requirements. The penalty could involve a monetary fine, which the business would be required to pay as a consequence of its non-compliance with administrative obligations.
