HMRC has reviewed its trusts guidance to cover its duty of care where the sharing of trust information with third parties (for example, for anti-money laundering purposes) could expose the beneficial owner to a disproportionate risk of harm.
In a new section added to its guidance notes for trustees and agents, HMRC confirms that, from 1 September 2022, it will share information held on the Trust Registration Service in limited circumstances with some third parties, but that the information will only be shared where either:
individuals can show that they are looking into a specific instance of money laundering or terrorist financing in relation to a specific trust; or
a trust holds a controlling interest in offshore companies.
An exemption will apply where the sharing of information would lead to a disproportionate risk of fraud, kidnapping, blackmail, extortion, harassment, violence or intimidation.
Trustees or agents should write to HMRC if they become aware that one or more of the trust’s beneficial owners may be exposed to a disproportionate risk of harm if their information is released. The letter should include basic details for the trust and also identify:
beneficial owners who are at risk of harm and the full reason why they are at risk;
the specific risk of harm;
the full reason for believing that releasing their trust information would expose them to a disproportionate risk of harm; and
the length of time for which the risk will continue.
HMRC has reviewed its trusts guidance to cover its duty of care where the sharing of trust information with third parties (for example, for anti-money laundering purposes) could expose the beneficial owner to a disproportionate risk of harm.
In a new section added to its guidance notes for trustees and agents, HMRC confirms that, from 1 September 2022, it will share information held on the Trust Registration Service in limited circumstances with some third parties, but that the information will only be shared where either:
individuals can show that they are looking into a specific instance of money laundering or terrorist financing in relation to a specific trust; or
a trust holds a controlling interest in offshore companies.
An exemption will apply where the sharing of information would lead to a disproportionate risk of fraud, kidnapping, blackmail, extortion, harassment, violence or intimidation.
Trustees or agents should write to HMRC if they become aware that one or more of the trust’s beneficial owners may be exposed to a disproportionate risk of harm if their information is released. The letter should include basic details for the trust and also identify:
beneficial owners who are at risk of harm and the full reason why they are at risk;
the specific risk of harm;
the full reason for believing that releasing their trust information would expose them to a disproportionate risk of harm; and
the length of time for which the risk will continue.
