Financial Crime World

Individuals with Significant Influence or Control Over Trusts and Partnerships Must Be Identified

The Anguilla Financial Services Commission’s (AFSC) regulations require individuals who exercise significant influence or control over trusts and partnerships to be identified and reported. This is a crucial step in promoting transparency and combating money laundering and terrorist financing.

Factors Considered by the AFSC

To determine whether an individual exercises significant influence or control, the AFSC considers several factors, including:

  • Right of Appointment or Removal: The right to appoint or remove trustees or partners
  • Financial Control: The right to direct the distribution of funds or assets
  • Investment Decisions: The right to direct investment decisions
  • Amendments: The right to amend the trust or partnership deed
  • Revocation/Termination: The right to revoke the trust or terminate the partnership

Additionally, the AFSC takes into account whether an individual is regularly involved in the operation of the trust or partnership, such as issuing instructions that are generally followed.

List of Registrable Persons

The AFSC has established a list of registrable persons who must be identified and reported. These individuals include:

  • Beneficial Owners: Beneficial owners of Anguilla companies
  • Individuals with Significant Influence or Control: Individuals who exercise significant influence or control over trusts or partnerships
  • Legal Entities with Majority Interests: Legal entities with majority interests in other legal entities

Determining Registrable Persons

To determine whether a legal entity is a registrable person, the AFSC considers factors such as:

  • Majority Interest: Whether the legal entity has a majority interest in another legal entity
  • Indirect Ownership: Whether the legal entity holds shares or rights indirectly through an ownership chain
  • Significant Control: Whether the legal entity exercises significant control over another legal entity

Compliance Requirements

Companies are required to identify and report their registrable persons, including providing information about their beneficial owners. This information must be filed with the AFSC and kept up-to-date.

Summary

In conclusion, individuals who exercise significant influence or control over trusts and partnerships, as well as legal entities with majority interests in other legal entities, must be identified and reported to the AFSC. Compliance with these regulations is essential for maintaining a transparent and stable financial system in Anguilla.