Trust Beneficial Ownership Registration: New Requirements Take Effect

January 20, 2023

New regulations aimed at increasing transparency and combating financial crimes have come into effect, requiring trusts to maintain beneficial ownership registers.

What’s Changed?

Under the new rules, changes to beneficial ownership must be reported by individuals with an interest in the trust within a specified timeframe. The notification must include the date of the change and provide necessary information for the trustee to update the register accordingly.

Key Changes

• Trustee Obligations: Trustees are now required to maintain a beneficial ownership register, which must include information on the trust’s beneficiaries.
• Beneficial Owner Notifications: Beneficial owners must notify the trustee of any changes to their status within:
  • 2 months of the change occurring
  • 1 month if they become aware of the change through other means
• Consequences of Non-Compliance: Failure to comply with these regulations can result in criminal charges and fines.

Enforcement and Penalties

• High Court Powers: The High Court has been granted powers to rectify beneficial ownership registers and order compensation for any loss sustained by affected parties.
• Penalties for Non-Compliance: Individuals who fail to comply with notice requirements under the new regulations may face:
  • Fines
  • Imprisonment

The introduction of these regulations is expected to increase transparency in the trust sector and help authorities combat financial crimes such as money laundering and tax evasion.