Trustees (Transparency and Effective Control) Regulations 2017

No. S 151

Trustees Act

(CHAPTER 337)

Trustees
(Transparency and Effective Control)
Regulations 2017

In exercise of the powers conferred by section 84A of the Trustees Act, the Minister for Law makes the following Regulations:

Citation and commencement

1. These Regulations are the Trustees (Transparency and Effective Control) Regulations 2017 and come into operation on 31 March 2017.

Definitions

2. In these Regulations, unless the context otherwise requires —

“entity” means —

(a)	a sole proprietorship;
(b)	a partnership;
(c)	a limited partnership;
(d)	a limited liability partnership;
(e)	a corporation sole;
(f)	a company or any other association or body of persons corporate or unincorporated; or
(g)	an express trust or other similar arrangement;

“identity card” has the same meaning as in section 2(1) of the National Registration Act 1965;

[S 249/2023 wef 31/12/2021]

“relevant party”, in relation to a relevant trust, means a relevant trust party of the relevant trust.

Scope of Regulations

3.—(1) Subject to paragraph (2), these Regulations apply to any relevant trust created before, on or after 31 March 2017.

(2) These Regulations do not apply to any relevant trust that is specified in the First Schedule.

Obligation to obtain, etc., information of relevant parties

4.—(1) A trustee of a relevant trust must, within the time specified in paragraph (3), take reasonable steps to ensure that the information mentioned in paragraph (2) of each relevant party —

(a)	is obtained; and
(b)	is verified by means of source data, documents or information that is reliable and independently sourced.

(2) The information in paragraph (1) is —

(a)

where the relevant party is an individual, his or her —

(i)	full name, including any aliases;
(ii)	identity card number, birth certificate number, passport number, or other similar unique identification number issued by a government authority;
(iii)	residential address;
(iv)	date of birth; and
(v)	nationality; and

(b)

where the relevant party is an entity —

(i)

its full name;

(ii)

its incorporation number or business registration number;

(iii)

its registered or business address;

(iv)

its principal place of business (if different from its registered or business address mentioned in sub‑paragraph (iii));

(v)

its date of constitution, incorporation or registration;

(vi)

its place of incorporation or registration; and

(vii)

the following information about every connected individual of the entity:

(A)	his or her full name, including any aliases;
(B)	his or her identity card number, birth certificate number, passport number, or other similar unique identification number issued by a government authority.

(3) The steps mentioned in paragraph (1) must be taken —

(a)

in the case of a trust that is a relevant trust on 30 April 2017 —

(i)

on or before 30 May 2017; or

(ii)

in respect of any of the following relevant parties that is not known to the trustee on or before 30 May 2017 — as soon as reasonably practicable after the relevant party is known to the trustee:

(A)	a beneficiary;
(B)	a protector;
(C)	a person who has any power over the disposition of any property that is subject to the relevant trust;

(b)

in the case of a relevant trust created after 30 April 2017 —

(i)

in respect of any of the following relevant parties — before the trustee exercises or performs any function, duty or power in respect of the relevant trust:

(A)	a settlor;
(B)	another trustee; or

(ii)

in respect of any of the following relevant parties — as soon as reasonably practicable after the relevant party is known to the trustee:

(A)	a beneficiary;
(B)	a protector;
(C)	a person who has any power over the disposition of any property that is subject to the relevant trust; and

(c)

in the case of a trust that is not a relevant trust on 30 April 2017 but which becomes a relevant trust after 30 April 2017 —

(i)

within 60 days after the date on which the trust becomes a relevant trust; or

(ii)

in respect of any of the following relevant parties that is not known to the trustee within the time specified in sub‑paragraph (i) — as soon as reasonably practicable after the relevant party is known to the trustee:

(A)	a beneficiary;
(B)	a protector;
(C)	a person who has any power over the disposition of any property that is subject to the relevant trust.

(4) In paragraph (2)(b)(vii), “connected individual” —

(a)	in relation to an entity that is a partnership, means any partner or manager;
(b)	in relation to a trust or other similar arrangement, means any individual having executive authority in the trust or other similar arrangement; and
(c)	in relation to any other entity, means any director, or any individual having executive authority, in the entity.

Obligation to obtain, etc., information of effective controllers of relevant parties

5.—(1) A trustee of a relevant trust must, within the time specified in paragraph (3), take reasonable steps to ensure that the information mentioned in paragraph (2) of each effective controller of a relevant party, if any —

(a)	is obtained; and
(b)	is verified by means of source data, documents or information that is reliable and independently sourced.

(2) The information in paragraph (1) is the effective controller’s —

(a)	full name, including any aliases;
(b)	identity card number, birth certificate number, passport number, or other similar unique identification number issued by a government authority;
(c)	residential address;
(d)	date of birth; and
(e)	nationality.

(3) The steps mentioned in paragraph (1) must be taken —

(a)

in the case of a trust that is a relevant trust on 30 April 2017 —

(i)

on or before 30 May 2017; or

(ii)

in respect of an effective controller of any of the following relevant parties that is not known to the trustee on or before 30 May 2017 — as soon as reasonably practicable after the effective controller is known to the trustee:

(A)	a beneficiary;
(B)	a protector;
(C)	a person who has any power over the disposition of any property that is subject to the relevant trust;

(b)

in the case of a relevant trust created after 30 April 2017 —

(i)

in respect of an effective controller of any of the following relevant parties — before the trustee exercises or performs any function, duty or power in respect of the relevant trust:

(A)	a settlor;
(B)	another trustee; or

(ii)

in respect of an effective controller of any of the following relevant parties — as soon as reasonably practicable after the effective controller is known to the trustee:

(A)	a beneficiary;
(B)	a protector;
(C)	a person who has any power over the disposition of any property that is subject to the relevant trust; and

(c)

in the case of a trust that is not a relevant trust on 30 April 2017 but which becomes a relevant trust after 30 April 2017 —

(i)

within 60 days after the date on which the trust becomes a relevant trust; or

(ii)

in respect of an effective controller of any of the following relevant parties that is not known to the trustee within the time specified in sub‑paragraph (i) — as soon as reasonably practicable after the effective controller is known to the trustee:

(A)	a beneficiary;
(B)	a protector;
(C)	a person who has any power over the disposition of any property that is subject to the relevant trust.

(4) A trustee of a relevant trust need not take the steps prescribed in paragraph (1) in respect of any relevant party that is —

(a)	another relevant trust to which these Regulations apply;
(b)	a relevant trust specified in the First Schedule;
(c)	a company or foreign company to which Part 11A of the Companies Act 1967 applies; [S 249/2023 wef 31/12/2021]
(d)	a company that is set out in the Fourteenth Schedule to the Companies Act 1967; [S 249/2023 wef 31/12/2021]
(e)	a foreign company that is set out in the Fifteenth Schedule to the Companies Act 1967; [S 249/2023 wef 31/12/2021]
(f)	a limited liability partnership to which Part 6A of the Limited Liability Partnerships Act 2005 applies; or [S 249/2023 wef 31/12/2021]
(g)	a limited liability partnership that is set out in the Sixth Schedule to the Limited Liability Partnerships Act 2005. [S 249/2023 wef 31/12/2021]

Obligation to obtain information of service suppliers

6.—(1) A trustee of a relevant trust must, within the time specified in paragraph (3), take reasonable steps to ensure that the information mentioned in paragraph (2) of each person that is appointed or engaged as a service supplier to the relevant trust, is obtained.

(2) The information in paragraph (1) is —

(a)	the name of the service supplier;
(b)	the registered or business address of the service supplier;
(c)	the contact details of the service supplier; and
(d)	where the service supplier is an entity, the name of an individual who is authorised to act for the service supplier.

(3) The steps mentioned in paragraph (1) must be taken —

(a)

in the case of a trust that is a relevant trust on 30 April 2017 —

(i)	on or before 30 May 2017, where the service supplier is appointed or engaged on or before 30 April 2017; or
(ii)	as soon as reasonably practicable after the service supplier is appointed or engaged, where the service supplier is appointed or engaged after 30 April 2017;

(b)

in the case of a relevant trust created after 30 April 2017, as soon as reasonably practicable after the service supplier is appointed or engaged; or

(c)

in the case of a trust that is not a relevant trust on 30 April 2017 but which becomes a relevant trust after 30 April 2017 —

(i)	within 60 days after the trust becomes a relevant trust, where the service supplier is appointed or engaged before, on, or within 30 days after, the date on which the trust becomes a relevant trust; or
(ii)	as soon as reasonably practicable after the service supplier is appointed or engaged, where the service supplier is appointed or engaged more than 30 days after the date on which the trust becomes a relevant trust.

(4) In this regulation, “service supplier” means an agent of, or a service provider to, the relevant trust (including any investment adviser or manager, accountant or tax adviser).

Keeping, etc., of records of information obtained

7. A trustee of a relevant trust must take reasonable steps to ensure that an accurate record of the information obtained under regulations 4(1), 5(1) and 6(1) is —

(a)	kept and maintained in an easily accessible form;
(b)	updated in a timely manner; and
(c)	retained for a period of at least 5 years after the trustee ceases to be a trustee of the relevant trust.

Obligation to disclose that trustee is acting for relevant trust

8.—(1) Subject to paragraph (2), if a trustee of a relevant trust, when acting for the relevant trust, forms a business relationship with any specified person after 30 April 2017, the trustee must, at or before the time the business relationship is formed, take reasonable steps to inform the specified person that the trustee is acting for the relevant trust.

(2) The steps mentioned in paragraph (1) need not be taken by a trustee of a trust that is not a relevant trust on 30 April 2017 but which becomes a relevant trust after 30 April 2017, in respect of any business relationship that is formed within a period of 30 days after the date on which the trust becomes a relevant trust.

(3) Subject to paragraph (4), if a trustee of a relevant trust, when acting for the relevant trust, enters into a prescribed transaction with any specified person after 30 April 2017, the trustee must, at or before the time the prescribed transaction is entered into, take reasonable steps to inform the specified person that the trustee is acting for the relevant trust.

(4) The steps mentioned in paragraph (3) need not be taken by a trustee of a trust that is not a relevant trust on 30 April 2017 but which becomes a relevant trust after 30 April 2017, in respect of any prescribed transaction that is entered into within a period of 30 days after the date on which the trust becomes a relevant trust.

(5) In this regulation —

“advocate and solicitor” and “practising certificate” have the same meanings as in section 2(1) of the Legal Profession Act 1966;

[S 249/2023 wef 31/12/2021]

“law practice” has the same meaning as in section 70A(2) of the Legal Profession Act 1966;

[S 249/2023 wef 31/12/2021]

“prescribed transaction” means a transaction that has an aggregate value or amount of more than $20,000, whether the transaction is carried out in a single operation or multiple operations that appear to be linked;

“specified person” means —

(a)

a financial institution as defined in section 2 of the Financial Services and Markets Act 2022;

[S 249/2023 wef 31/12/2021]

[S 249/2023 wef 28/04/2023]

(b)

a casino operator as defined in section 2(1) of the Casino Control Act 2006;

[S 249/2023 wef 31/12/2021]

(c)

a licensed estate agent as defined in section 3(1) of the Estate Agents Act 2010;

[S 249/2023 wef 31/12/2021]

(d)

a regulated dealer as defined in section 2 of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019;

[S 994/2020 wef 14/12/2020]

[S 249/2023 wef 31/12/2021]

(da)

a pawnbroker as defined in section 3(1) of the Pawnbrokers Act 2015;

[S 994/2020 wef 14/12/2020]

[S 249/2023 wef 31/12/2021]

(e)

an advocate and solicitor who —

(i)	has in force a practising certificate; or
(ii)	is a director, a partner, a consultant or an employee of a law practice, whether or not the advocate and solicitor has in force a practising certificate;

(f)

a regulated foreign lawyer as defined in section 2(1) of the Legal Profession Act 1966;

[S 249/2023 wef 31/12/2021]

(g)

a foreign lawyer registered under section 36P of the Legal Profession Act 1966;

[S 249/2023 wef 31/12/2021]

(h)

a notary public as defined in section 2 of the Notaries Public Act 1959;

[S 249/2023 wef 31/12/2021]

(i)

a public accountant as defined in section 2(1) of the Accountants Act 2004; or

[S 249/2023 wef 31/12/2021]

(j)

a person (not being a person mentioned in paragraph (e) or (f) or a public accountant) who provides one or more of the following services:

(i)	acting as an agent for the formation of entities;
(ii)	acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a person holding a similar position in any other entity;
(iii)	providing a registered office, any business address or any accommodation, correspondence or administrative address for an entity;
(iv)	acting as (or arranging for another person to act as) a trustee of an express trust, or performing (or arranging for another person to perform) a function equivalent to the function of a trustee in any other similar arrangement;
(v)	acting as (or arranging for another person to act as) a nominee shareholder for another person.

Obligation to keep accounting records

9.—(1) A trustee of a relevant trust must take reasonable steps to ensure that there are kept in respect of the relevant trust, accounting records (including the details, documents and notes specified in paragraph (3)) that meet the requirements in paragraph (2).

(2) The accounting records mentioned in paragraph (1) must —

(a)

in the case of a trust that is a relevant trust on 30 April 2017 —

(i)	correctly explain all the transactions entered into by the relevant trust after 30 April 2017;
(ii)	enable the financial position of the relevant trust after 30 April 2017 to be determined with reasonable accuracy; and
(iii)	enable financial statements of the relevant trust in respect of any period after 30 April 2017 to be prepared;

(b)

in the case of a relevant trust created after 30 April 2017 —

(i)	correctly explain all the transactions entered into by the relevant trust on or after it is created;
(ii)	enable the financial position of the relevant trust on or after it is created to be determined with reasonable accuracy; and
(iii)	enable financial statements of the relevant trust in respect of any period on or after it is created to be prepared; and

(c)

in the case of a trust that is not a relevant trust on 30 April 2017 but which becomes a relevant trust after 30 April 2017 —

(i)	correctly explain all the transactions entered into by the relevant trust more than 30 days after it becomes a relevant trust;
(ii)	enable the financial position of the relevant trust more than 30 days after it becomes a relevant trust to be determined with reasonable accuracy; and
(iii)	enable financial statements of the relevant trust in respect of any period more than 30 days after it becomes a relevant trust to be prepared.

(3) The accounting records mentioned in paragraph (1) must include —

(a)

details of all sums of money received and expended by the relevant trust, and the matters in respect of which the receipt and expenditure takes place;

(b)

details of all sales, purchases and other transactions by the relevant trust;

(c)

details of the assets and liabilities of the relevant trust; and

(d)

in respect of the details mentioned in sub‑paragraphs (a), (b) and (c) —

(i)	underlying documents (including but not limited to invoices and contracts); and
(ii)	such notes as may be necessary to give a reasonable understanding of the details.

(4) Where a trustee of a relevant trust is required under paragraph (1) to ensure that accounting records in respect of any transaction are kept, the trustee must take reasonable steps to ensure the accounting records in respect of that transaction are kept for at least 5 years starting after the end of the calendar year in which the transaction is completed.

Offences

10. Any trustee of a relevant trust that, without reasonable excuse, fails to comply with regulation 4(1), 5(1), 6(1), 7, 8(1) or (3) or 9(1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000.

Circumstances in which effective controller considered as ultimately owning, etc., relevant party

11. For the purposes of Part 7 of the Act and these Regulations, the circumstances in which an effective controller of a relevant party is considered as —

(a)	ultimately owning the relevant party;
(b)	ultimately controlling the relevant party; or
(c)	exercising ultimate effective control over the relevant party,

are specified in the Second Schedule.

[S 249/2023 wef 31/12/2021]

Made on 31 March 2017.

NG HOW YUE

Permanent Secretary,
Ministry of Law,
Singapore.

[LAW 06/005/8.5 Vol. 8; AG/LEGIS/SL/337/2015/1 Vol. 1]

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