In a world where international legal and tax asset planning has become increasingly vital and growing, where The Anglo-Saxon trust remains the most perfect, complete and reliable instrument For the majority of the world’s citizens – in general – and for Argentines and Uruguayans – in particular -, there is An error that is repeated constantly In international banks and brokers: When processing trust fund documents, many compliance departments request data on the trust fund shareholders.
This is a serious technical and legal error It reveals a bigger problem: a lack of understanding of the legal nature of the fund.
In all common law systems, The trustee does not own the assets. He holds it “in trust” (the closest thing under civil law is “in a fiduciary capacity”), which means that (1) it is not part of his assets; (2) is not on its balance sheet; and (3) creditors cannot litigate with the trustee (except for fraud).
For this reason, The Fund’s shareholders have no legal or economic relationship with the Fund. Nothing at all.
The legislation is clear: Among other things, the Nevis International Exempt Trusts Law, the BVI Trustee Law, the Cayman Islands Trusts Law and the Trusts Laws of Jersey and Guernsey provide that: The trustee holds the legal title exclusively as “trustee,” without any personal interest.
but, Compliance (the biggest internal risk When dealing with complex structures), the trustee is usually treated as if it were a company holding the assets.
Are they perhaps confusing the trust’s UBO with the trustee’s UBO?
Unambiguous international standards: (i) FATCA and CRS require only the settlor, beneficiaries, protector (if any) and controlling persons to be identified; (2) Anti-Money Laundering and Combating the Financing of Terrorism rules It requires identifying those who have real economic interest or control over the assets.
Conclusion: There is no regulatory framework that qualifies trustee shareholders as “to be determined persons”.
Maximum Alert: When the person requesting data is a Compliance Record Agent (RA), agents must flee immediately.
This means that AR Not only does it not understand the trust structure or the legal separation between a company’s business and the third-party assets that the structure supports, but it also does not understand the legal relationship between the trust and the underlying company. (Bank account holder) Provided for the exclusive purpose of neutralizing US estate tax, in accordance with US regulations.
An entity that does not understand these legal limits constitutes a danger in itself.
There are many clients who suffer from inefficient compliance It is therefore essential that banks, brokers and registration agents train them properly.
In a global environment where assets are transferred, protected and planned internationally, understanding this difference is no longer optional. it is necessary.
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