FATF: Risk-based Approach for Trust and Company Service Providers

58

June 26 2019

Trust and company service providers (TCSPs) are involved in a wide range of services and activities for their clients. These services include: acting as a director or secretary of a company or similar position, providing a registered office or business address for a company, acting as trustees of an express trusts, among others. Not all of the persons and professionals active in this sector provide the same services.

Depending on the country in which they operate, TCSPs can also take different forms, from individual firms to subsidiaries of large financial institutions. Criminals may seek TCSP services to help them retain control of proceeds of their crimes, while disguising the origin and ownership of these assets. Through the creation of shell companies or trusts, they can conceal their ownership and create a veneer of legitimacy.