Guidance for a risk-based approach for trust and company service providers

View the Standard

The FATF risk-based approach (RBA) Guidance for trust and company service providers (TCSPs) aims to support the implementation of the RBA by the profession. The Guidance highlights the need for a sound assessment of the ML/TF risks that TCSPs face so that the policies, procedures and initial and ongoing client due diligence measures can mitigate these risks.

The Guidance is aimed at TCSP practitioners, countries and their competent authorities, including supervisors of TCSPs. In particular, it explains the obligation for TCSPs to identify and verify beneficial ownership information and provides examples of simplified, standard and enhanced CDD measures. 

The Guidance contains a section for supervisors of TCSPs. It explains the risk-based approach to supervision, as well as the supervision of the risk-based approach. The Guidance highlights the importance of supervision of beneficial ownership requirements in relation to a trust or other legal arrangement so that such information is maintained and available in a timely manner.