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Trust and company administration (The administration of trusts and…
Trust and company administration
Trust and company administration will involve the management and control of trust and company assets. Offshore service providers will ensure they follow their regulatory and statuary duties and that their employees are fit and proper and maintain competency
The administration of trusts and companies under administration may involve
Maintaining accounting records of the trust and company assets
Maintaining updated and accurate permanent records of the trust and company
Maintaining accurate and updated bookkeeping of the trust and company
Preparation of periodical financial statements of the trust and company
Preparation of records of any distributions and/or payments made by the trustee to the beneficiaries and/or agents of the trust
Preparation of records of all payments made by the company to the beneficial owner and/or agents of the company
Maintaining documents of title of the assets of the trust and/or the company is safe custody
Preparation of minutes and resolutions for the trust and company
Preparation of correspondence for the trust and company
Maintaining correspondence and permanent files for the trust and company
Being appointed as authorised signatories on trust and company bank accounts
Company administration
In order to ensure a smooth administration of their companies under management, company administrators would include the majority of the following checks and/or procedures to ensure that their written policies and procedures are always met. The service provider must also demonstrate that they have a robust risk management system and procedures in place to assist in identifying and manage any possible risks:
A summary of the clients' backgrounds and the reasons the setting up the company is noted in the records
The company administration document is correctly and effectively executed by all parties concerned
The initial funds and additional assets (as confirmed by the beneficial owners) are received
Full due diligence on the beneficial owners is obtained as appropriate
The inaugural company minutes are prepared, confirming the incorporation of the company and to record any decisions exercised by the board of the directors
A fee agreement is prepared to cover both the cost of setting up the company and maybe an administration charge or fixed charge for the rest of the calendar year or for the next 12 months
Bankers and other agents are appointed by the company and accounts open so that the assets can be held in the name of the company
Any assets received from the beneficial owners are promptly acknowledged by the company administrator and adequate controls and systems are in place to record and suitably invest the assets held
Ensure that appropriate diary notes are prepared for all future transactions
Bookkeeping of the receipt of assets and all future transactions are carried out correctly and on a timely basis
Ensure that an initial review is undertaken (usually within four months of acceptance of the company) to ensure that all administration matters have been successfully undertaken and are complete
Ensure that a periodic review is undertaken on all company structures
Record any outstanding issues from the reviews and/or follow up points in a diary system or on a review database and track on a regular basis
Trust administration
In order to ensure a smooth administration of the trust, a trustee would include the majority of the following checks and/or procedures to ensure that their internal controls and policies are met and that any possible risks are identified at an early stage
A summary of clients' backgrounds and the reasons for setting up the trust is noted in the records
The trust deed and any supporting trust documents are correctly and effectively executed by all parties concerned
The initial funds (as stated in the trust deed) are received
Full due diligence on the settlor and beneficiaries of the trust is obtained as appropriate
Trustee minutes are prepared, confirming the appointment of the trustee and the constitution of the trust and to record any decisions exercised by the trustee
A fee agreement is prepared to cover both the cost of setting up of the trust and maybe an administration charge or fixed charge for the rest of the calendar year or for the next 12 months
The additional assets are also received from the settlor
Bankers and other agents are appointed by the trustee and accounts opened so that the assets can be held in the name of the trustee
Any assets received from the settlor are promptly acknowledged by the trustee and adequate controls and systems are in place to record and suitably invest the assets received
Bookkeeping of the receipt of assets and all future transactions are carried out correctly and on a timely basis
Ensure that appropriate diary notes are prepared for all future transactions
Ensure that an initial review is undertaken (usually within four months of acceptance of the trust) to ensure that all administration matters have been successfully undertaken and are complete
Ensure that a periodic review is undertaken on all trust structures
Record any outstanding issues from the reviews and/or follow up points in a diary system or on a review database and track on a regular basis
After the creation of a trust or the incorporation of a company, high standards of administration must be maintained throughout their existence to ensure that
The objectives of the entity are achieved. For example, that the intended beneficiaries benefit from the trust assets at the intended time and for the reasons intended by the settlor
The structure is administered in accordance with the taxation and/or legal advice and that the taxation and legal consequence of any activity is considered
High levels of customer service are maintained, enhancing the reputation of the service provider, the industry and the offshore jurisdiction
Risks are identified and adequately measured. Such risks include regulatory risk as well as fiduciary risks
The entities do not pose a risk to the service provider in becoming involved in an arrangement involving the proceeds of crime and that all requirements of the anti-money laundering legislation including due diligence requirements are met