Trustees (Transparency and Effective Control) Regulations, 2017

The Trustees (Transparency and Effective Control) Regulations, 2017 sets out obligations for trustees of Charitable Trusts, Non-Profit Organisations (NPOs), Institutions of Public Character (IPO) and other trusts if the trust is: 

  • Governed by Singapore Law, 
  • Administered in Singapore, or 
  • Any of the Trustees are resident in Singapore 

The Trustees (Transparency and Effective Control) Regulations, 2017

The Regulations stipulate: 
  • Obligations to Obtain and Verify Information: Obligations to obtain information about: 
    • Relevant trust parties (such as the settlor, trustee, protector, and beneficiaries of the trust),  
    • Effective controllers* of relevant parties (i.e. individuals who ultimately own or control the relevant trust party), and  
    • Service suppliers.  
The Trustees must verify the information obtained against source data and independently sourced and reliable data.  *Circumstances in which an effective controller is considered as ultimately owning or controlling a relevant party: The act sets out instances where an effective controller having interest through more than 25% of shares, voting power, profits, capital, or surplus assets is considered as ultimately controlling or exercising ultimate effective, control over the relevant party (including relevant trust party). 
  • Record-Keeping Requirements: Obligation to retain accurate records of: 
    • All the information obtained relating to relevant parties for a minimum period of five years. 
    • All accounting records that  
      • Correctly explain all the transactions of the trust 
      • Accurately determine the financial position of the trust  
      • Enable the preparation of the financial statements of the trust. 
  • Disclosure Mandate: Where a trustee of a relevant trust intends to form a business relationship and enter into a transaction exceeding S$20,000 with any specified person, which includes financial institutions, lawyers, and licensed estate agents, the trustee is required to inform the specified person that the trustee is acting on behalf of the relevant trust. 
  • Regulatory Action: The regulation considers non-compliance with its requirements as an offence and prescribes proportionate regulatory actions. 
Download Trustees (Transparency and Effective Control) Regulations, 2017