Trust companies regulated under the TCA have to comply with the MAS Notice on Prevention of Money Laundering and Countering the Financing of Terrorism (“AML/CFT”). Amongst other obligations, the MAS Notice requires them to identify and verify the identity of trust relevant parties, perform ongoing transactions monitoring and file suspicious transaction reports. MAS’ AML/CFT requirements for licensed trust companies are consistent with FATF standards. Trust companies must collect and make available information to law enforcement authorities when required to do so. 9. The benefits of having a comprehensive, well-structured trust can only be effectively achieved if it is properly administered by the trustee. Similarly, a strong regulatory framework needs to be complemented with an effective supervisory regime. Following the revisions to the MAS Notice on AML/CFT, issued on 2 December 2009, MAS conducted a thematic inspection of licensed trust companies to assess their compliance with the revised Notice on AML/CFT. In June last year, the MAS issued a circular on our inspection findings. I am glad that most trust companies have in place appropriate policies and procedures to combat money laundering. However, MAS highlighted that implementation can strengthen further with a more consistent application of these policies and procedures across the industry. I will also stress that adequate and timely record keeping forms an important part of the entire process. Global standards: transparency of Beneficial Ownership (“BO”) and tax transparency 10. Singapore supports the international effort in combating money laundering, terrorist financing and other abuses of the financial system.

As part of this effort, two key global standards are relevant to the trust industry – (i) transparency of beneficial ownership, and (ii) tax transparency through Automatic Exchange of Information (“AEOI”) between tax jurisdictions. These rules, when applied appropriately and consistently across all jurisdictions, can help to more effectively combat money laundering and other serious financial crimes including on tax. This in turn, will safeguard the integrity of the global financial system, of which the trust industry is a part, and create the conditions for sustainable growth. Increased focus on transparency of Beneficial Ownership 11. Let me first touch on the increased focus on beneficial ownership. 12. Given the risks of the misuse of corporate vehicles for illicit purposes, there has been increased international focus on transparency of beneficial ownership. Initiatives such as the FATF Anti-Corruption Work Group and the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes (“Global Forum”) are good examples. 13. There is also growing recognition that transparency of beneficial ownership will help to prevent and combat financial crimes. We can thus expect international standards setters such as the FATF to probe deeper in their assessment of how countries promote transparency of beneficial ownership. For example, the revised FATF Recommendations  2  BIS central bankers’ speeches  now include additional elaboration on the manner in which countries can go about enhancing the transparency of trusts.