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HMRC have published a response to their consultation ‘Fifth Money Laundering Directive and Trust Registration Service’ which includes a list of trusts which will now be exempted from registration and a concession relevant to non-UK trusts.

The consultation considered how the UK might meet its obligations under the Fifth EU Anti-Money Laundering Directive (5MLD) with respect to trusts.

The exclusion of certain types of trusts follows representations from professional bodies that the proposed changes to the rules for trust registration, due to be introduced from March 2022, were too wide. They could adversely affect the ability of the UK professional services market to compete internationally.

Trusts which will be excluded from registration under 5MLD include:

The government has confirmed that:

Links

Fifth EU Anti-Money Laundering Directive checklist
This checklist incorporates the changes made by Anti-Money Laundering Directive 5. This is designed to be illustrative only and should give some insight into the changes you will need to make to your own systems in reviewing your existing clients.

UK Trusts
Trusts have been used in various forms for tax planning purposes for many years and the tax legislation has had to evolve with them.

Non-resident trusts
Non-resident trusts have long been used for tax planning purposes and as a result, the legislation has been changed many times in order to deal with perceived tax avoidance.

External links

Fifth Money Laundering Directive and Trust Registration Service Summary of Responses 

Draft legislation The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020