A company which provides the following trust services may need to be licensed under the TCA:
- Creation of an express trust;
- Acting as trustee of an express trust;
- Arranging for any person to act as trustee of an express trust; and
- Providing trust administration services to an express trust.
An express trust refers to a trust that is created by a settlor (the person setting up the trust) who gives instructions as to how his or her property is to be held.
Examples of licensing exemptions for certain trust services are as follows:
- If a company is already licensed by MAS as a bank or merchant bank. The bank or merchant bank should notify MAS by submitting within one month from the date of commencement of trust business.
- If the trust services are carried out by a private trust company, lawyers or accountants. The lawyers should notify MAS by submitting within one month from the date of commencement of trust business. In addition, private trust companies are required to engage a licensed trust company to ensure that they comply with MAS’ requirements on anti-money laundering and countering terrorism financing.
The licenced trust company should comply with MAS’ requirements on anti-money laundering and countering terrorism financing.
A licensed trust company should put in place policies, procedures and controls which are commensurate with its nature, scale and complexity of business. A licensed trust company should conduct its trust business with honesty, fairness, integrity and professionalism.