HMRC has provided the CIOT with confirmation that regulations to implement the customer due diligence aspects of the fifth money laundering directive (5MLD) from 10 January 2020 (SI 2019/1511) do not include requirements relating to trust registration, for which consultation on further draft legislation will follow in the early part of 2020.
In its update (bit.ly/2tzQJY6), HMRC says: ‘As part of this technical consultation draft legislation for the trust registration elements of 5MLD will be shared. This will be transposed into domestic law during 2020. We will keep impacted trusts and their representatives up to date on when the requirement to provide information on TRS under 5MLD will commence and understand that sufficient notice will be required in order to ensure business readiness’.
In a letter to the financial secretary to the Treasury dated 3 January 2020 regarding implementation of trust registration aspects of the directive, the CIOT has expressed concern over the wide interpretation given to the concept of ‘business relationship’ under article 31 of the directive, which would require trustees to disclose certain information. The institute suggests a tighter interpretation based on relationships which are either indefinite in duration or intended to last more than two years. The CIOT argues that regular tax reporting services should not be regarded as a business relationship for trust registration purposes. See bit.ly/2uszRmt.
HMRC has provided the CIOT with confirmation that regulations to implement the customer due diligence aspects of the fifth money laundering directive (5MLD) from 10 January 2020 (SI 2019/1511) do not include requirements relating to trust registration, for which consultation on further draft legislation will follow in the early part of 2020.
In its update (bit.ly/2tzQJY6), HMRC says: ‘As part of this technical consultation draft legislation for the trust registration elements of 5MLD will be shared. This will be transposed into domestic law during 2020. We will keep impacted trusts and their representatives up to date on when the requirement to provide information on TRS under 5MLD will commence and understand that sufficient notice will be required in order to ensure business readiness’.
In a letter to the financial secretary to the Treasury dated 3 January 2020 regarding implementation of trust registration aspects of the directive, the CIOT has expressed concern over the wide interpretation given to the concept of ‘business relationship’ under article 31 of the directive, which would require trustees to disclose certain information. The institute suggests a tighter interpretation based on relationships which are either indefinite in duration or intended to last more than two years. The CIOT argues that regular tax reporting services should not be regarded as a business relationship for trust registration purposes. See bit.ly/2uszRmt.
