When a trust is involved in a transaction — especially UK property, banking, investment, or cross‑border matters — KYC and AML checks become stricter. In practice, regulators and firms require more information, more documents, and clearer explanations. These requirements are mandatory and form a core part of UK AML compliance.
Trusts fall into a higher‑risk category under UK anti‑money laundering rules because they separate legal ownership from beneficial ownership. As a result, firms must work harder to understand who controls the trust and where the money comes from.
Accordingly, this guide explains which certified documents are required for KYC and AML when a trust is involved, how trust checks differ from individual and company checks, and how to prepare documents in a format that UK solicitors, banks, and regulated firms will accept without delay.
This guide is written for:
- Individuals acting as trustees or beneficiaries
- Family trusts and private wealth structures
- Offshore and cross‑border trusts
- Conveyancers, solicitors, and compliance teams
Why Trusts Are Treated as Higher AML Risk
UK regulators and regulated firms apply enhanced scrutiny to trusts because, in practice, trusts can hide control, ownership, and source of funds.
In particular, common risk factors include:
- Separation of legal and beneficial ownership, which makes control harder to trace
- Complex or layered trust and company structures that disguise the origin of funds
- Nominee arrangements that hide the real decision‑makers
- Offshore elements or links to high‑risk jurisdictions
- Virtual office addresses with little economic substance
As a result, criminals often use trusts in money‑laundering schemes involving UK real estate.
To reduce these risks, regulators have introduced:
- The Money Laundering Regulations 2017 (as amended)
- The 5th Money Laundering Directive (5MLD)
- The UK Trust Registration Service (TRS), which now captures many express trusts
However, TRS registration alone is not enough. Instead, regulated firms must still identify and verify all relevant parties themselves.
KYC and AML Where a Trust Is Involved: The Risk‑Based Approach
Under UK AML law, firms must apply a risk‑based approach. Consequently, trust matters almost always receive closer review.
In practical terms, this approach requires firms to:
- Identify all relevant persons connected to the trust
- Verify identity using certified documents or approved digital checks
- Establish beneficial ownership and control
- Verify source of funds and source of wealth
- Apply enhanced due diligence (EDD) where risk indicators appear
Although each firm follows its own AML policy, the document set below reflects standard UK practice across conveyancing, banking, and private wealth work.
Step 1: Identify All Relevant Persons in the Trust
At a minimum, firms must identify:
- Trustees (individual or corporate)
- Settlors (if living)
- Named beneficiaries
- Classes of potential beneficiaries (for discretionary trusts)
- Protectors or appointors (if applicable)
- Any person exercising effective control over the trust
Because discretionary and offshore trusts often involve changing beneficiary classes, firms usually carry out expanded analysis at this stage.
Step 2: Certified Identity Documents (All Individuals)
Accordingly, each relevant individual must provide certified true copies of the following documents.
Identity (One Required)
- Passport (preferred)
- National identity card
- UK photocard driving licence
Proof of Address (One Required)
- Bank or building society statement
- Council tax bill
- Utility bill (where accepted)
- HMRC correspondence
Key requirement: Certification must meet UK AML standards. In practice, poor wording, missing dates, or unverifiable certifiers cause most document rejections.
Step 3: Trust‑Specific Core Documents
In addition to individual KYC, firms typically require these trust documents:
- Trust deed (and any deeds of variation)
- Trust Registration Service (TRS) evidence, where applicable
- Letter of wishes, where firms rely on it to assess control
- Trustee resolution approving the transaction
- Organisational structure chart for complex or layered trusts
Where a corporate trustee is involved, firms also require full company KYC for that entity.
Step 4: Beneficial Ownership and Control Analysis
Regulated firms must clearly understand who ultimately controls the trust.
To achieve this, firms usually:
- Map trustee powers
- Identify veto or appointment rights
- Review protector roles
- Analyse any reserved powers
In higher‑risk cases, firms may also request legal opinions or written confirmations from trustees.
Step 5: Source of Funds and Source of Wealth (Critical)
When a trust buys property, invests, or transfers money, source of funds checks are mandatory.
Common evidence includes:
- Bank statements showing how funds accumulated
- Sale contracts from previous asset disposals
- Investment account statements
- Inheritance records
- Business financial statements
In most trust structures, firms require both:
- Source of funds (for the specific transaction)
- Source of wealth (how the trust built its assets over time)
Step 6: PEP and Sanctions Screening
Firms must screen all relevant individuals connected to the trust for:
- Politically Exposed Person (PEP) status
- UK and international sanctions
If screening identifies a potential match, firms carry out enhanced due diligence. In addition, they assess whether they can continue to act. Where sanctions apply, firms must report confirmed matches to OFSI.
Step 7: Enhanced Due Diligence (When Required)
In particular, firms trigger enhanced checks when they identify:
- Offshore or high‑risk jurisdictions
- Complex or opaque structures
- Unusual funding routes
- High‑value UK property
- PEP or sanctions exposure
EDD may involve further documents, independent verification, or senior compliance approval.
Step 8: Record‑Keeping and Ongoing Monitoring
Under UK AML rules, firms must therefore:
- Retain KYC and AML records for at least five years
- Carry out ongoing monitoring throughout the relationship
- Update documents when risk profiles change
Because trust structures can evolve, firms monitor them more closely than simple individual matters.
Common Reasons Trust KYC Fails (In Practice)
- Incomplete identification of beneficiaries
- Uncertified or incorrectly certified documents
- Differences between the trust deed and stated control
- Unclear or inconsistent source of funds explanations
- Over‑reliance on TRS registration
As a result, early preparation reduces delays, refusals, and regulatory risk.
Practical Guidance
In practical terms, if a trust is a party to a transaction:
- Start KYC early, not at exchange or completion
- Expect enhanced scrutiny as standard
- Use professionally certified documents accepted by UK firms
- Prepare a clear explanation of the trust structure and funding
How Ginkgo Advisory Helps
Ginkgo Advisory supports clients with AML‑ready certified documents for:
- Individual trustees and beneficiaries
- UK and offshore trusts
- Cross‑border property transactions
- Banking and investment onboarding
By working with UK‑regulated professionals, we ensure documents are prepared in a form solicitors, banks, and conveyancers can verify and accept, which helps reduce rejections and delays.
Related Guides
- Certified Documents for KYC and AML (Individuals)
- Certified Documents for KYC and AML (Companies)
- Certified True Copies for UK Property Transactions
- Certified True Copies for Overseas Company Use
Contact Us
Address
167-169 Great Portland Street, 5/F, London
English 
Chinese