Trusts can take many different forms, so it is not always possible to provide a single step-by-step process for carrying out customer due diligence (CDD). The guidance below outlines the general approach you should follow.
A trust's beneficial owners may include:
- Individuals who are entitled to 25% or more of the trust's assets.
- The class of beneficiaries, where the trust is established for a group rather than named individuals.
- Individuals who exercise control over the trust, such as the trustees and settlor (also known as the trustor or grantor).
When onboarding a trust, you should:
- Obtain approval from your Money Laundering Officer (MLO) before establishing a business relationship.
- Obtain a copy of the Trust Deed, where available.
- Check whether the trust is registered with HM Revenue & Customs' Trust Registration Service (TRS).
- If the trust is not registered, verify the details of the trustees and settlor using alternative reliable sources.
- Identify any beneficiaries with a 25% or greater interest, or establish the relevant class of beneficiaries.
- For collective investment funds or similar arrangements, identify the general partner, investment manager, and any individual with a 25% or greater interest.
- Carry out customer due diligence on all relevant individuals in line with your agency's risk assessment.
Note: Trusts can be complex legal arrangements. If you are unsure how to proceed, always seek guidance from your Money Laundering Officer (MLO) or an independent compliance adviser before continuing.