Does a settlor have to provide their identifcation documents to the bank?

Yes in some circumstances, the ATO provides in order to establish a trust as a Passive Non-Financial Entity (NFE), it becomes imperative to identify the Controlling Persons within it. The Controlling Persons encompass:

1. The settlor (or settlors).
2. The trustee (or trustees).
3. The protector (or protectors) if applicable.
4. The beneficiaries or categories of beneficiaries.
5. Any other natural person (or persons) who wield ultimate effective control over the trust.

Additionally, it is crucial to ascertain whether any of these Controlling Persons qualify as Reportable Persons, indicating their tax residency in a foreign jurisdiction.

It's worth noting that settlors of trusts are invariably considered Controlling Persons, irrespective of whether they exert actual control over the trust; this distinction is not pertinent in the context of Automatic Exchange of Information (AEOI) requirements.

Furthermore, when conducting due diligence on a trust as an account holder, the ability to rely on Anti-Money Laundering/Know Your Customer (AML/KYC) procedures hinges on whether the account is categorized as a pre-existing account or a new account.

Other questions in Discretionary Trust