My family business is in a trust. Do the AML rules require us to register beneficial owners?

What the Law Says

The EU’s Fifth Anti-Money Laundering Directive (5AMLD) extends transparency obligations to certain trusts, including those holding family businesses, when they generate income or hold assets in the EU.

Under 5AMLD, a trust is subject to beneficial ownership registration if it is ‘expressly created by law or by a legal act’ and either (i) acquires real estate in an EU Member State, or (ii) engages in economic activity — such as operating a family business — within the EU.

Beneficial owners of a trust include any natural person who ultimately owns or controls the trust, or on whose behalf a transaction is conducted. This includes settlors, trustees, protectors, beneficiaries (or classes of beneficiaries), and any other natural person exercising ultimate effective control over the trust.

Member States must ensure that information on beneficial owners is held in central registers accessible to competent authorities, financial intelligence units, obliged entities (e.g., banks), and — with legitimate interest — members of the public.

Statutory Text

Member States shall ensure that adequate, accurate and current information on the beneficial ownership of trusts is held in a central register.

— Directive (EU) 2018/843, Art. 3a(1)

Statutory Text

Beneficial owner means any natural person who ultimately owns or controls a trust... including the settlor, the trustee, the protector... and the beneficiaries.

— Directive (EU) 2018/843, Art. 3(6)(b)

Sources