Anti-Money Laundering

STEP supports the principle of effective measures to prevent money laundering.

The European Union’s Fifth Anti-Money Laundering Directive (5AMLD) came into force on 10 January 2020 and the enhanced trust registration service (TRS) obligations on 10 March 2020. 5AMLD expands the reporting requirement from trusts with UK tax consequences to include all express trusts and access to the trust register is extended to the public, subject to each jurisdiction’s discretion.

HMRC ran a technical consultation early this year to identify a number of aspects such as how wide the scope of access to the register will be, clarification of the definitions of ‘express trusts’ and ‘legitimate interest’ as well as a review of the schedule of deadlines and penalties.

Another point of concern for STEP is where a trust enters into a business relationship in a member state. A ‘business relationship’ is defined in 5AMLD by reference to the business of an ‘obliged entity’ (i.e. the financial institutions, accountants, lawyers, tax advisers, trust or company service providers and others who have to comply with the money laundering rules.) If interpreted in a board way this could deter significant amounts of trust work away from the UK.

Automatic Exchange of Information (AEOI)

STEP recognises that a fair tax system must include effective measures to combat evasion and criminal or terrorist financing.

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Base Erosion and Profit Shifting (BEPS)

Base Erosion and Profit Shifting (BEPS) is a global problem which refers to corporations who use tax avoidance strategies to exploit gaps in tax rules.

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European Succession Regulation

The European Succession Regulation (Regulation) came into force on 17 August 2015 for the estates of persons who die on or after that date.

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