Jurisdiction(s):
United Kingdom

Key definition

Trust definition

What does Trust mean? A trust is a legal arrangement in which one or more trustees hold and manage property (the trust property) for the benefit of beneficiaries. It is primarily defined by case law rather than a single statute, though key rules appear in legislation (for example, writing requirements and trustee powers). Trusts arise by express declaration (usually by a settlor), by operation of law (resulting or constructive trusts), or under statute, and are used in private client, commercial, pension and charitable contexts. Core features include: the trustee’s fiduciary duties to act loyally, prudently and in accordance with the trust terms; control...

Trust and company service providers in law firms: AML compliance under the Money Laundering Regulations 2017—HMRC registration, CDD, risk assessment, red flags, monitoring and training

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Practice notes

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trust and company service providers (TCSPs)

TCSPs face a heightened likelihood of exploitation for money laundering or terrorist financing. This arises because trusts and companies can be used to:

conceal the beneficial ownership and control of wealth and assets
set up and administer multiple legal entities at comparatively low cost
construct complex, opaque arrangements
operate across several jurisdictions
avoid tax or duties

Although trusts and companies are central to legitimate investment and commercial activity, criminals may deploy them to give unlawful transactions a veneer of legitimacy.

If your firm delivers any TCSP service, you fall within the scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, and must comply fully with them, including obligations specific to TCSPs.

This Practice Note reflects:

National risk assessment of money laundering and terrorist financing 2025
SRA Sectoral Risk Assessment—Anti-money laundering and terrorist financing, July 2025
SRA, Guidance for trust and company service providers
SRA, A thematic review of trust and company service providers
Legal Sector Affinity...

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Web page updated on 22/05/2026

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