Summary


This article will outline how First AML verify Trusts under Australian, New Zealand, and United Kingdom AML legislation. 


*ID&V = Identity Verification (Identify & Verify)



TABLE OF CONTENTS





Australia


Who do we verify?


  1. Must ID&V all individuals with effective control or beneficial ownership e.g. trustee, appointors, settlors, protectors, guardians.
  2. Only verify the settlor if they have power to appoint or if settlement sum > $10,000
  3. Trustee: 
    1. If non-individuals must ID&V all directors or equivalent of that entity
      1. Professional Trustee Company - Verify Directors + Shareholders (25% +)
      2. Private Trustee Company - Verify Directors + Shareholders (25% +) 
    2. Where the Trustee is a Statutory Trustee Company or a Custodian Trustee (e.g. Trustee Executors Ltd, Guardian Trust, Perpetual, Covenant Trustee Services, Public Trust) ID&V representatives with signing authority on behalf of the Trust. Its role is to hold and manage trust property on the instructions of the managing trustees. It acts based on the majority of the trustee(s) decisions. If the managing trustees change, there is no need to change the legal ownership of the trust assets. This mechanism allows for a separation between legal ownership, management, and beneficial interest.
    3. No need to verify the Advisory Trustee(s). They do not have legal ownership of the property or the powers or duties of a trustee. The advisory trustee is an adviser to the real trustee(s).  The trust property remains vested in the trustee who retains sole management and administration of the trust.
  4. Beneficiaries: 
    1. For a discretionary trust or a charitable trust or a trust that has more than 10 beneficiaries, First AML will obtain a description of

      1. each class or type of beneficiary; or

      2. if the trust is a charitable trust, the objects of the trust.

    2. First AML does not obtain the name and date of birth of any beneficiaries of discretionary trusts, charitable trusts or any trust with more than 10 beneficiaries. 

    3. First AML will verify all non-discretionary beneficiaries for non-discretionary Trusts. Name, date of birth, address and biometrics will be obtained for all non-discretionary beneficiaries. 

  5. Corporate Trustees:
    1. First AML will request that directors of an Australian Corporate Trustee Company are verified as per Standard Due Diligence. 

    2. First AML will verify shareholders who own 25% or more of a corporate trustee company set up for the Trust’s lawyers or accountants to act on behalf of them. 

    3. If the Customer has a trustee company in their personal capacity, First AML will verify any shareholders above the beneficial ownership threshold. 

    4. However, if there are four or more Directors of an Australia Corporate Trustee Company, First AML will ask the trustee company to nominate a director, a trust lawyer or an accountant that is closest to the Trust e.g. direct supervision or day-to-day involvement in the Trust activities. 



What do we collect?


  1. Full name, type of trust, address, registration number if applicable.

  2. First AML will request a certified copy of the Trust Deed and any amendments from the Customer after a Trust case has been initiated unless the Trust Deed is uploaded into the First AML Platform.

  3. First AML will analyse the Trust Deed and determine all Trustees that require verification. Verification requests will be sent to Trustees. If the Trust Deed is not able to be provided, First AML will ask for a letter from the Customer’s lawyer/accountant to confirm the details of the Trust. 

  4. If a Trust Deed cannot be provided, First AML will collect a letter from the lawyer/accountant confirming the trust details.




New Zealand


Who do we verify?


  1. Must ID&V all individuals with effective control or beneficial ownership e.g. trustee, appointors, settlors, protectors, guardians.
  2. Only verify the settlor if they have power to appoint or if settlement sum > $10,000
  3. Trustee: 
    1. If non-individuals must ID&V all directors or equivalent of that entity
      1. Professional Trustee Company - Verify Directors
      2. Private Trustee Company - Verify Directors + Shareholders (>25%) 
    2. Where the Trustee is a Statutory Trustee Company or a Custodian Trustee (e.g. Trustee Executors Ltd, Guardian Trust, Perpetual, Covenant Trustee Services, Public Trust or Maori Trust) ID&V representatives with signing authority on behalf of the Trust. Its role is to hold and manage trust property on the instructions of the managing trustees. It acts based on the majority of the trustee(s) decisions. If the managing trustees change, there is no need to change the legal ownership of the trust assets. This mechanism allows for a separation between legal ownership, management, and beneficial interest.
    3. No need to verify the Advisory Trustee(s). They do not have legal ownership of the property or the powers or duties of a trustee. The advisory trustee is an adviser to the real trustee(s).  The trust property remains vested in the trustee who retains sole management and administration of the trust.
  4. Beneficiaries: 
    1. For a discretionary trust or a charitable trust or a trust that has more than 10 beneficiaries, First AML will obtain a description of

      1. each class or type of beneficiary; or

      2. if the trust is a charitable trust, the objects of the trust.

    2. First AML does not obtain the name and date of birth of any beneficiaries of discretionary trusts, charitable trusts or any trust with more than 10 beneficiaries. 

    3. First AML will verify all non-discretionary beneficiaries for non-discretionary Trusts. Name, date of birth, address and biometrics will be obtained for all non-discretionary beneficiaries. 

  5. Corporate Trustees:
    1. First AML will request that directors of an Australian Corporate Trustee Company are verified as per Standard Due Diligence. 

    2. First AML will not verify shareholders of a corporate trustee company set up for the Trust’s lawyers or accountants to act on behalf of them. 

    3. If the Customer has a trustee company in their personal capacity, First AML will verify any shareholders above the 25% beneficial ownership threshold. 

    4. However, if there are four or more Directors of a New Zealand Corporate Trustee Company, First AML will ask the trustee company to nominate a director, a trust lawyer or an accountant that is closest to the Trust e.g. direct supervision or day-to-day involvement in the Trust activities. 



What do we collect?


  1. Full name, type of trust, address, registration number if applicable.

  2. First AML will request a copy of the Trust Deed and any amendments from the Customer after a Trust case has been initiated unless the Trust Deed is uploaded into the First AML Platform.

  3. First AML will analyse the Trust Deed and determine all Trustees that require verification. Verification requests will be sent to Trustees. If the Trust Deed is not able to be provided, First AML will ask for a letter from the Customer’s lawyer/accountant to confirm the details of the Trust. 

  4. Source of wealth/funds

  5. First AML does not collect certified copies of Trust Deeds or amendments.

  6. If a Trust Deed cannot be provided, First AML will collect a letter from the lawyer/accountant confirming the trust details.




United Kingdom


Who do we verify?


  1. Must ID&V all individuals with effective control or beneficial ownership e.gsettlor, trustees, beneficiaries, any class of persons in whose main interest the trust is set up and any individual with control over the trust. 
  2. Trustee: 
    1. If non-individuals must ID&V all directors or equivalent of that entity
      1. Professional Trustee Company - Verify Directors
      2. Private Trustee Company - Verify Directors + Shareholders (>25%) 
    2. Where the Trustee is a Statutory Trustee Company or a Custodian Trustee (e.g. Trustee Executors Ltd, Guardian Trust, Perpetual, Covenant Trustee Services, Public Trust or Maori Trust) ID&V representatives with signing authority on behalf of the Trust. Its role is to hold and manage trust property on the instructions of the managing trustees. It acts based on the majority of the trustee(s) decisions. If the managing trustees change, there is no need to change the legal ownership of the trust assets. This mechanism allows for a separation between legal ownership, management, and beneficial interest.
    3. No need to verify the Advisory Trustee(s). They do not have legal ownership of the property or the powers or duties of a trustee. The advisory trustee is an adviser to the real trustee(s).  The trust property remains vested in the trustee who retains sole management and administration of the trust.
  3. Beneficiaries: 
    1. For a discretionary trust or a charitable trust or a trust that has more than 10 beneficiaries, First AML will obtain a description of

      1. each class or type of beneficiary; or

      2. if the trust is a charitable trust, the objects of the trust.

    2. First AML does not obtain the name and date of birth of any beneficiaries of discretionary trusts, charitable trusts or any trust with more than 10 beneficiaries. 

    3. First AML will verify all non-discretionary beneficiaries for non-discretionary Trusts. Name, date of birth, address and biometrics will be obtained for all non-discretionary beneficiaries. 

  4. Corporate Trustees:
    1. First AML will request that directors of an UK Corporate Trustee Company are verified as per Standard Due Diligence. 

    2. First AML will not verify shareholders of a corporate trustee company set up for the Trust’s lawyers or accountants to act on behalf of them. 

    3. If the Customer has a trustee company in their personal capacity, First AML will verify any shareholders above the 25% beneficial ownership threshold. 

    4. However, if there are four or more Directors of a UK Corporate Trustee Company, First AML will ask the trustee company to nominate a director, a trust lawyer or an accountant that is closest to the Trust e.g. direct supervision or day-to-day involvement in the Trust activities. 



What do we verify?


  1. Full name, type of trust, address, registration number if applicable.

  2. First AML will request a copy of the Trust Deed and any amendments from the Customer after a Trust case has been initiated unless the Trust Deed is uploaded into the First AML Platform.

  3. First AML will analyse the Trust Deed and determine all Trustees that require verification. Verification requests will be sent to Trustees. If the Trust Deed is not able to be provided, First AML will ask for a letter from the Customer’s lawyer/accountant to confirm the details of the Trust. 

  4. First AML does not collect certified copies of Trust Deeds or amendments.

  5. If a Trust Deed cannot be provided, First AML will collect a letter from the lawyer/accountant confirming the trust details.