Do you have Trust issues? Part 3

So let’s have a look at how you can put all this into action. Clearly, the process of performing AML CDD on a Trust involves a number of steps. Usually, this is a process that involves asking a number of people for information which you can assess, record and where necessary verify, until you have all the information you need.

We are mostly focused on the additional work for Trusts, but have included some other areas for completeness.  Remember to check with your AML Programme and Compliance Officer for your unique CDD procedures!

1.       GET TRUST DOCUMENTS: Ask your client for a copy of the Trust Deed along with evidence of where the Trust’s assets/funds come from (Source of Wealth/Proof of Funds).

Using the Trust Deed you can determine and record:

o   The correct name and address of the Trust

o   The type of Trust (Discretionary, Fixed, etc)

o   Additional objects and beneficiary information need for Trusts

o   The people who need to be ID verified and their role(s)

Remember, Trustees often change overtime, so make sure you have the latest documents to ensure you know the people currently involved in the Trust. If the latest documents don’t show the original Settlor(s), ask for the original Trust Deed too.

Note: Trust Deeds can include quite private information.  If a client is reluctant to provide the Trust Deed, you may be able to get a trusted third party (e.g. their lawyer) to provide you the information you need without disclosing all the Trust details).