Guiding Principles for Trust Companies to Ensure AML/CFT Compliance

Trust companies in Singapore need to comply with the Trustees (Transparency and Effective Control) Regulations, 2017 and the Notice issued by the Monetary Authority of Singapore (MAS) ([MAS Notice TCA-N03 (Amendment) 2022] to ensure compliance with the Anti-Money Laundering regime of Singapore. This infographic brings out the Guiding Principles for Trust Companies to ensure AML/CFT Compliance  as prescribed by the MAS that trust companies operating in Singapore must adhere with.

The following principles serve as a guide for all trust companies in the conduct of their operations and business activities while ensuring AML/CFT compliance:

(a) Trust companies should exercise adequate Anti-Money Laundering (AML) due diligence when dealing with the following:

• trust relevant parties
• natural persons such as authorized signatories appointed to act on the trust relevant party’s behalf
• connected parties of the trust relevant party
• effective controllers or ultimate beneficial owners (UBOs) of a settlor
• effective controllers or ultimate beneficial owners (UBOs) of a trustee.

(b) Trust company should conduct their business operations in alignment with the highest ethical standards and avoid commencing or continuing any business contact that is or can potentially be connected with Money Laundering (ML) or Terrorism Financing (TF).

(c) A trust company should assist and cooperate with the law enforcement authorities in Singapore to prevent ML/TF.

(d) Trust companies should make adequate, appropriate and timely disclosures by identifying themselves as a trust when commencing any trust-related business with the following types of entities:

• Financial Institution
• Designated Non-Financial Business or Profession
• Variable Capital Company (VCC).