Trust regulation is full of holes. We argue that every jurisdiction should require registration in a central and public registry of the beneficial owners of (a) all domestic law trusts and (b) all trusts with any connection point to a jurisdiction.
Given the complex ownership structures of trusts and the potential for subterfuges, their “beneficial owners” should include all related persons: all settlor(s), protector(s), trustee(s), beneficiary(ies), and any other person mentioned in a trust document. This comprehensive list of beneficial owners is based on standard provisions required by the OECD.
Key findings
- Trusts are in many ways a greater threat to democracy than opaque shell companies – yet also harder to crack.
- Trust regulation has Several holes. It needs reform.
Key recommendations
- Every jurisdiction should require registration in a central and public registry of the beneficial owners of (a) all domestic law trusts and (b) all trusts with any connection point to a jurisdiction