With effect from 1 March 2018 (the “Commencement Date”), Trust or Company Service Providers (“TCSPs”) are required to apply for a licence from the Registrar of Companies (the “Registrar”) to carry on a trust or company service business, and to comply with statutory customer due diligence (“CDD”) and record-keeping requirements.
The relevant legislation is contained in the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) (Amendment) Ordinance 2018, which amends the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (Cap 615) (the “AMLO”). The AMLO, as amended, extends CDD and record-keeping requirements to designated non-financial businesses and professions (which include solicitors, professional accountants, real estate agents and TCSPs) when they engage in certain businesses and transactions, such as trust or company service business, and requires TCSPs to be licensed for this purpose.
Tricor Group companies are deemed to be TCSP licensees as from 1 March 2018, and are required to apply CDD and record-keeping requirements to new and existing clients.
Tricor offers services to TCSPs that require licensing.
This TechNews highlights key requirements of the licensing regime and the practice implications.