Arbitration analysis: This case is the first ever final decision concerning a challenge against a trust arbitration award in the Bahamas and given the dearth of such decisions globally should be of interest to anyone practicing in this field. Mr Justice Klein held that the Bahamas Arbitration Act 2009 permits only very limited challenges against arbitral awards, embodying as it does ‘the now firmly established principle of “compulsory judicial restraint”’. The decision provides clarity in Bahamian arbitration law by adopting the prevailing view internationally that the ability of a party to bring a claim before a tribunal affects only the admissibility of a particular claim and not the tribunal’s jurisdiction. In addition, it clarifies that although the Trustee Act (in para 5 of its second schedule) has disapplied the separability principle as regards trust arbitrations, the competence-competence principle continues to apply, thus parties cannot short-circuit trust arbitrations merely by challenging the underlying trust deed. Such disputes were likewise, despite some contrary indications in the Trustee Act, arbitrable assuming that it fell within the scope of the parties’ arbitration clause. Justice Klein also noted that appeals on points of law were only permissible on an opt-in basis under the Arbitration Act so that a court could not grant leave in the absence of consent from both parties. Written by Dr Lucas Clover Alcolea, lecturer at The University of Otago, Faculty of Law.

Meaning of settlor for trust law purposes As trustees are not the beneficial owners of the capital and income comprising the trust fund, they are not able to settle property in trust in the same sense as a person who is a beneficial owner. See Tierney v Wood at paras [335–336] per Romilly MR, where it was held that the person enabled by law to declare a trust of property is the beneficial owner of it. The transfer of income from Trust A to Trust B is therefore unlikely to render the trustees of Trust A as settlors of Trust B. Meaning

The legal document that sets up a pension scheme and defines how it should be operated.

The Trust Registration Service (TRS) is HMRC’s online register for recording beneficial ownership and key information about certain UK and non-UK trusts for anti‑money laundering and tax transparency purposes. It is central to private client, tax, trusts and estates practice in England and Wales, Scotland and Northern Ireland. In the UK, the TRS is created and governed primarily by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended). These regulations set out which express trusts must register, deadlines, update requirements, and the limited circumstances in which information can be accessed by law enforcement and, in some cases, third parties with a legitimate interest. Registration typically involves providing details of the settlor, trustees, beneficiaries (or classes), trust assets and relevant tax information. Failure to register, or to keep details up to date, can attract HMRC penalties and may cause issues with banks, investment providers and conveyancers conducting client due diligence. The term “TRS” is specific to the UK; Ireland operates a separate Central Register of Beneficial Ownership of Trusts under its own anti‑money laundering regime, with similar but distinct registration obligations.

Background to the Trust Registration Service (TRS) HMRC's online Trust Registration Service (TRS) was designed to implement the EU’s Fourth Anti-Money Laundering Directive Directive (EU) 2015/849 (4MLD) through the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 and the EU’s Fifth Anti-Money Laundering Directive Directive (EU) 2018/843 (5MLD) through the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991. The Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511 were also made to transpose 5MLD into UK law, but these dealt with the provisions other than those relating to the registration of trusts. This Practice Note therefore focuses on MLR 2017, SI 2017/692 and MLR 2020, SI 2020/991. For further guidance on the transposition of 5MLD into UK law including the consultations which took place, see Transposing 5MLD into UK law below. MLR 2020, SI 2020/991 amended and extended MLR 2017, SI 2017/692 to significantly increase the types of trusts that must register with the TRS. The TRS has been stated

• Determine whether a business relationship is being established: ◦ Is there an existing business relationship? If yes, there is no requirement to check for discrepancies ◦ Will the firm provide services to the trustees (eg agreed terms of business)? ◦ Will the relationship be ongoing (rather than a one-off instruction)? (see: TRSM70020) • request a copy of the Proof of Entry from the TRS to verify, the trust is registered and the information is up to date such as the trustees

This Practice Note sets out when there is an obligation to register a trust with the Trust Registration Service (TRS). The information in this table is taken from the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended by the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991 and the Money Laundering and Terrorist Financing (Amendment) Regulations 2022 (MLR 2022), SI 2022/137. On 15 March 2021, HMRC announced that the original deadline of 10 March 2022 for registering trusts with the TRS which are required to be registered as a result of the EU’s Fifth Anti-Money Laundering Directive (EU) 2018/843 (5MLD) and MLR 2020, SI 2020/991, would be extended for approximately 12 months from the date on which the expanded TRS was delivered. The expanded TRS became available to all customers on 1 September 2021. It was announced that the deadline for registrations of non-taxable trusts in existence on or after 6 October 2020

HMRC's online Trust Registration Service (TRS) is a central register of beneficial ownership of trusts and was established in order to implement the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692. MLR 2017, SI 2017/692 was amended by the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991. MLR 2017 and MLR 2020 implement the EU’s Fourth Anti-Money Laundering Directive (EU) 2015/849 (4MLD) and Fifth Anti-Money Laundering Directive (EU) 2018/843 (5MLD) respectively. For registration and updating deadlines under MLR 2017, SI 2017/692, see Practice Note: Trust Registration Service (TRS)—table of registration requirements and deadlines.. HMRC stated that trusts have 90 days to register non-taxable trusts and update the TRS in the event of any changes of details or circumstances to taxable and non-taxable trusts from 1 September 2022. The new deadlines came into effect on 9 March 2022 under regulation 45 of the Money Laundering and Terrorist Financing (Amendment) Regulations 2022 (MLR 2022), SI 2022/137 made on 14 February

What is the Trust Registration Service? The Trust Registration Service (TRS)was introduced in 2017 by HMRC as a way to implement the EU Fourth Money Laundering Directive and the initial version was focussed only on taxable trusts needing to register. If a trust had a UK tax consequence then the trustees had a duty to register, provide certain information about beneficial ownership and keep certain records. The obligations have now increased and extended to all ‘express trusts’ regardless of whether the trust has any UK tax obligations. An express trust must register unless it is in a class of excluded trusts which are set out in Schedule 3A of Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLR 2017). The key legislation in this area is. • EU Fourth Anti Money Laundering Directive Directive (EU) 2015/849 • Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 • EU Fifth Anti Money Laundering DirectiveDirective (EU) 2018/843 • Money Laundering and Terrorist

A trust account is an account opened by a customer acting as a trustee or fiduciary and called a 'trust account' or given a name which indicates its fiduciary nature.

Trust and company service providers (TCSPs) are at a high risk of being used for money laundering or terrorist financing. This is because trusts and companies can be used to: • obscure the beneficial ownership and control of assets and wealth • create and control multiple legal entities at a relatively low cost • create complex and opaque structures • operate across multiple jurisdictions, and • avoid tax or duties Trusts and companies are commonly used for legitimate investment and business purposes, however criminals may use them to add a veneer of legitimacy to illegal transactions. If your firm provides any service as a TCSP, you are in scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, and must be in full compliance with them, including any requirements specific to TCSPs. This Practice Note reflects: • National risk assessment of money laundering and terrorist financing 2025 • SRA Sectoral Risk Assessment—Anti-money laundering, terrorist financing, proliferation financing and sanctions • SRA,

An implied term in the employment relationship that applies to both the employer and employee.