CMFAS RES5 AML / CFT question: beneficial owners the financial

CMFAS RES5AML / CFT

Where the customer is a trust, the beneficial owners the financial adviser must identify include:

A only the trustees, since they hold legal title to the trust assets and act for the trust
B only the beneficiaries currently receiving distributions, as they benefit from the assets
C the trust's bank, its investment manager and the lawyer who drew up the trust deed
D the settlors, trustees, protector (if any), beneficiaries and any natural person exercising ultimate control

Show the answer and explanation

Answer: D. the settlors, trustees, protector (if any), beneficiaries and any natural person exercising ultimate control

For a trust the FA must identify the settlors, the trustees, the protector (if any), the beneficiaries (including those within a designated class), and any natural person exercising ultimate ownership, control or effective control over the trust. It is not limited to the trustee or to current beneficiaries.

Common mistake

The BO of a trust spans settlor, trustee, protector, beneficiaries and any ultimate controller — not the trustee alone.

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Original study material mapped to the public CMFAS RES5 syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.