Trust deregistration for non-compliance with the FIA
22 September 2021
The Financial Intelligence Centre (FIC) as part of its continued efforts to assist the
Government of the Republic of Namibia in preventing and combatting Money Laundering (ML), Terrorism Financing (TF) and Proliferation Financing (PF), hereby issue this Directive in terms of section 9(1)(e), read with sections 9(2)(f) and 9(2)(g) of the Financial Intelligence Act, 2012 (Act No. 13 of 2012) as amended (hereinafter referred to as the FIA).
In terms of Section 5 of the FIA and its complimentary Regulation 3, the Master of High Court is, amongst others, required to:
• register all testamentary and inter vivos trusts in the prescribed manner and form;
• collect and keep up-to-date information in respect of the founder, each trustee, each income beneficiary and each beneficial owner of all registered testamentary and inter vivos trusts; and
• not register any trust without the aforementioned information being availed to him/her.
Registration as envisaged in section 5 of the FIA, requires the Master to open and keep a register of prescribed up-to-date information on all trusts for purposes of identifying all natural and legal persons that are associated with that trust. The rationale behind this section stems from the fact that trusts (or legal arrangements as they are called in other jurisdictions) have been identified internationally as a popular vehicle for ML/TF/PF activities. As such, for purposes of effectively reventing trusts from being abused for ML/TF/PF purposes, it is important to identify and keep up-to-date records of any natural or legal person that is connected to or stands to benefit from that registered trust.
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