Understand the trust arrangement
A trust has different roles and powers from a company. Rules 6-3 applies to trusts and equivalent foreign arrangements in its stated Australian-establishment scope.
It requires information about identity, type, existence, governing powers and business or operations. A corporate trustee remains a separate entity.
Sources: Federal Register of Legislation: Section 6-3(1) to (6); Federal Register of Legislation: Section 28(2) to (3).
- Trust and terms
Understand the arrangement and governing powers.
- Trustee
Establish the current trustee and authority to act.
- Beneficiaries
Identify beneficiaries or the permitted class description where its conditions apply.
- Other control roles
Examine relevant settlor, appointor, guardian and protector information.
Keep trust roles separate
A role map, not an ownership chart. Roles do not require identical checks, and a corporate trustee remains a separate entity.
Connected concepts. Lines do not show ownership or a reporting hierarchy.
Distinguish the roles
Rules 6-3 requires beneficiary identity information. A description of each beneficiary class is permitted only when the trust’s nature makes individual identification impossible.
The Rules separately address trustees, the control structure, and any settlor, appointor, guardian or protector. These roles are not interchangeable.
Initial CDD and any applicable modified measures determine the necessary collection and verification. Not every person named in a deed requires identical checks.
Sources: Federal Register of Legislation: Section 6-3(1) to (6); Federal Register of Legislation: Section 28(2) to (3).
Read the current documents together
AUSTRAC identifies a trust deed and amendments as possible verification evidence. The original deed may not record a later trustee appointment or change of power.
Record the current trustee, relevant powers and supporting documents. For a corporate trustee, examine the company’s role and relevant individuals.
Invented example: a change of trustee
A trust supplies its original deed. A company that the deed does not name as trustee signs the current instruction.
The reviewer requests evidence of the change and current authority. The difference is an evidence gap, not proof of an improper appointment.
Sources: Federal Register of Legislation: Section 6-3(1) to (6); Federal Register of Legislation: Section 28(2) to (3).
- Trust file
A fictional file contains the original deed and a current instruction.
- Original trustee
The original deed names one trustee.
- Current signer
A different company signs the new instruction. Establish its current role and authority.
- Evidence gap
Examine the change and the relevant powers. Do not infer that the difference is improper.
An old deed and a new trustee
The labelled links explain the arrangement. They do not determine its legal treatment.
Invented example. Current trust instruction. Original trustee: Named in old deed. Company signer: Current role to establish.
Invented example: a trustee, an appointment power and beneficiaries
In this invented example, a company is the current trustee. An appointor has a documented power to replace it. The deed describes the beneficiaries.
The reviewer records these as separate relationships. The appointor’s replacement power requires consideration for control. The trustee company’s structure also requires examination.
The reviewer examines whether the beneficiaries can be identified individually or whether the qualified class-description measure applies. The example does not determine an actual deed’s legal effect.
- Trustee company
The trustee company administers the fictional trust.
- Replacement power
The appointor’s documented power needs a separate control assessment.
- Beneficiaries
Identify individuals or establish that the qualified class approach applies.
- Current evidence
Connect each role to the current deed, variation or other evidence.
Trust roles answer different questions
Invented example. These boxes do not imply share ownership or equal verification duties.
Separate evidence questions. An answer to one does not settle the others.
Use a map of the roles
A role map can show the trust and each relevant person or entity. Label the role, power and evidence.
A power to replace a trustee is not a share percentage. Keep any uncertainty about documents or authority visible.
Sources: Federal Register of Legislation: Section 6-3(1) to (6); Federal Register of Legislation: Section 28(2) to (3).
Make a class description specific
The class-description condition concerns the nature of the trust. A customer’s refusal to supply information does not establish that condition.
Record the applicable class wording and document reference. A general note such as family members may not explain the class.
Keep beneficiary identification separate from control. A class description does not establish who can replace the trustee.