The Information Commissioner’s Office (ICO) has warned that trust beneficiaries would be placed at a ‘real risk of identity theft’ by the requirements of the new trusts register, which HMRC plans to launch in June, if proposed European Commission amendments to the Fourth Money Laundering Directive are implemented to allow full public access.
All trusts with UK tax consequences will need to be registered. The register will ask for:
details of the trust assets, including addresses and values; and
the identity of the settlor, trustees, protector (if any), all other persons exercising effective control over the trust (if any) and the beneficiaries or class of beneficiaries.
The information required will include:
name;
date of birth;
NI number for UK residents; and
address and passport or ID number for non-UK residents.
The new register is designed to implement the requirements of the EU Fourth Money Laundering Directive in the UK and, as stated in HMRC’s Trusts & Estates Newsletter in April, ‘will be in line with HMRC’s digital strategy and provide greater tax transparency going forward’.
The ICO raised its concerns in a response to HM Treasury’s consultation on the draft Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which will implement the amended directive in the UK. The European Commission has proposed further amendments to the directive to allow full public access to registers of trust beneficial ownership. The ICO says in its response that: ‘It will be important to ensure that any final decision on this proposed amendment, and its UK transposition if agreed, takes full account of data protection law and the right to privacy.’
The Information Commissioner’s Office (ICO) has warned that trust beneficiaries would be placed at a ‘real risk of identity theft’ by the requirements of the new trusts register, which HMRC plans to launch in June, if proposed European Commission amendments to the Fourth Money Laundering Directive are implemented to allow full public access.
All trusts with UK tax consequences will need to be registered. The register will ask for:
details of the trust assets, including addresses and values; and
the identity of the settlor, trustees, protector (if any), all other persons exercising effective control over the trust (if any) and the beneficiaries or class of beneficiaries.
The information required will include:
name;
date of birth;
NI number for UK residents; and
address and passport or ID number for non-UK residents.
The new register is designed to implement the requirements of the EU Fourth Money Laundering Directive in the UK and, as stated in HMRC’s Trusts & Estates Newsletter in April, ‘will be in line with HMRC’s digital strategy and provide greater tax transparency going forward’.
The ICO raised its concerns in a response to HM Treasury’s consultation on the draft Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which will implement the amended directive in the UK. The European Commission has proposed further amendments to the directive to allow full public access to registers of trust beneficial ownership. The ICO says in its response that: ‘It will be important to ensure that any final decision on this proposed amendment, and its UK transposition if agreed, takes full account of data protection law and the right to privacy.’
