JFSC November 2014 REVISIONS TO COMMISSION TCB Sector specific AML/CFT HANDBOOKS, CONSULTATION PAPER AML 4, 2014

The amendments that are proposed in this consultation paper will affect relevant persons carrying on trust company business.

Chapter 2 of this consultation paper makes proposals to amend the current sector specific section for trust company business in the AML/CFT Handbook.

Whilst a number of changes are summarised in this consultation paper, some of the more important changes are summarised below. Appendix B of this consultation paper includes draft Section 13 of the AML/CFT Handbook. The Commission will also shortly publish a “best-efforts” marked-up draft of the sector specific section.

Section 13 of the AML/CFT Handbook 1.2.1 (Amongst other things) explains who is to be considered the customer of a relevant person carrying on trust company business.

Section 13.3.1 explains who is to be considered the customer of a relevant person that is to act as trustee of an express trust.

Guidance is based on paragraph 29 of the current sector specific section, except that a co-trustee is not considered to be the relevant person’s customer (rather information on any co-trustee should be collected in order to assess the risk of money laundering or financing of terrorism).

Section 13.3.4 explains who is to be considered the customer of a relevant person that is to act as the general partner of a limited partnership.

Guidance is based on paragraph 104 of the current sector specific section, except that:

Another general partner is not considered to be the relevant person’s customer (rather information on any other general partner should be collected in order to assess the risk of money laundering or financing of terrorism); and
A “threshold” is applied, so that identification measures are applied to those limited partners holding a material interest in the capital of the partnership, and not all limited partners.

Having determined who its customer(s) is, a relevant person carrying on trust company business is to apply identification measures in line with Section 4 of Part 1 of the AML/CFT Handbook.

In line with Section 4, a relevant person may demonstrate that it has found out the identity of a customer’s beneficial owners where it finds out the identity of individuals ultimately holding a material interest in the capital of its customer, rather than all individuals with a beneficial interest.