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Trustees Must Provide Timely Information on Beneficial Owners

The Irish government has introduced new regulations aimed at combating money laundering and terrorist financing by increasing transparency around the ownership of trusts.

The New Rules

Under the new rules, trustees of “relevant trusts” are required to provide information identifying all beneficial owners of the trust and notify the designated person of any changes to the Trust Register within 14 days of becoming aware of the change. This move is part of Ireland’s efforts to implement the EU’s Fifth Anti-Money Laundering Directive (5AMLD), which requires member states to maintain a central register of beneficial ownership information for trusts, foundations, and other legal entities.

The Trustee’s Role

  • Trustees of relevant trusts must provide any member of An Garda Síochána, the Revenue Commissioners, or a competent authority with timely access to the Trust Register on request.
  • Authorities may disclose this information to corresponding competent authorities in other EU member states where requested.
  • Beneficial owners who are not included on the Trust Register must notify the trustee in writing within two months of becoming aware of their status or any changes to their details.

Designated Persons and Authorities

  • Designated persons, such as accountants and lawyers, are required to notify the Trust Registrar of any discrepancies they identify between the Trust Register and the Central Trust Register.
  • Similarly, An Garda Síochána, the Revenue Commissioners, CAB, and other competent authorities must notify the Trust Registrar if they become aware of any discrepancies.

Access to the Central Trust Register

  • The Central Trust Register is not open to public inspection.
  • High-ranking officers from An Garda Síochána, the Revenue Commissioners, and other competent authorities may access the register on request.
  • Designated persons who have a legitimate interest in accessing the register may also apply for access.

Compliance Deadline

Trustees of existing trusts must comply with the new regulations by October 23, 2021. Ongoing obligations for disclosure of beneficial ownership information will continue to apply.

Purpose of the Regulations

The introduction of these measures is aimed at reducing the use of corporates, trusts, and fund vehicles in fraudulent crime and money laundering. While only time will tell if these efforts are successful, the risks of punitive sanctions for non-compliance are now a reality for trustees and other relevant parties.

Get in Touch

If you have concerns about beneficial ownership or company secretarial queries, please contact:

  • Salvador Nash
  • Andrea Sherlock [insert contact details]