5MLD exemption – Is a charity a trust?

Published by Susan Robinson on 5 February 2020

Share this article

Charities are to be granted an exemption from the Fifth Money Laundering Directive (5MLD).

Is a charity a trust? This might not seem an important question in the general scheme of things, but it nearly became very important when considering the scope of the Fifth Money Laundering Directive (5MLD).

This could have forced all Charitable Trusts to register with the government’s new trust registration service. More “red tape” and increased admin for in many cases, already resource stretched Charitable Trusts

Fortunately, following lobbying from sector bodies, a technical consultation launched recently has said: “Charitable trusts are not in scope to register because the risk of these kind of trusts being used for money laundering or terrorist financing activity is low”.

The technical consultation focuses on what other types of trust will be out of scope of registration. The consultation closes on 21 February 2020.

We will continue to monitor this. Sign up to our complimentary Charity and not-for-profit Pathfinder newsletter. 

Share this article

Email Susan

    • yes I have read the privacy notice and am happy for Kreston Reeves to use my information

    View teamSubscribe

    Subscribe to our newsletters

    Our complimentary newsletters and event invitations are designed to provide you with regular updates, insight and guidance.

      • Business, finance and tax issuesPersonal finance, tax, legal and wealth management issuesInternational business issuesCharity and not-for-profit issues

      • Academies and educationAgricultureFinancial servicesLife sciencesManufacturingProfessional practicesProperty and constructionTechnology

      • yes I agree I have read and accept the privacy policy and am happy for Kreston Reeves email communications I have selected above

      You can unsubscribe from our email communications at any time by emailing [email protected] or by clicking the 'unsubscribe' link found on all our email newsletters and event invitations.