Money Laundering ID query re Trust shareholder

Money Laundering ID query re Trust shareholder

Didn't find your answer?

Do we need to see Trust Deed, or maybe get Trustees to confirm? If not, how else to be sure who is entitled to specified interest in at least 25% of the capital of the trust?

Replies (1)

Please login or register to join the discussion.

Basset Hound
By Cuchulainn
07th Sep 2010 21:55

I assume you mean a trust 'beneficiary' or 'object'.

A trust is not a body corporate like a limited company; it is a contract between persons.

A trust, therefore, cannot have 'shareholders'. Those entitled to benefits from a trust are called 'objects' if they have never received a benefit from it; 'beneficiaries' if they have.

To answer your question, I would firstly ask to see a copy of the trust deed to see who is named in it as the  objects/beneficiaries and if they have any specific entitlement from the trust fund. You need to check as well to see if there are powers granted to the trustee or protector to add to or remove from the list of beneficiaries or to alter the entitlements of the objects/beneficiaries, and if those powers have in fact been exercised in any way.

Having done this, you need to carry out due diligence, in accordance with AML requirements, on any proposed recipient of distributions from the trust, before any payment is made to them.

I trust this is OK.

Thanks (0)