What is a trust or company service provider?
A Trust or Company Service Provider (TCSP) is a business that provides formation, management, or administration services for companies, trusts, or similar legal structures. TCSPs are classified as designated non-financial businesses under the FATF Recommendations and are subject to AML obligations.
Services covered
The regulations define TCSP services broadly. They include:
- Acting as a formation agent of legal persons
- Acting as or arranging for another person to act as a director or secretary of a company
- Providing a registered office, business address, or correspondence address
- Acting as or arranging for another to act as a trustee of a trust
- Acting as or arranging for another to act as a nominee shareholder
AML risk profile
TCSPs face particular AML exposure because entity formation services can be exploited to create opaque ownership structures for laundering purposes. The ability to provide nominee directors, registered offices, and shelf companies makes TCSPs potential gatekeepers - or unwitting facilitators - of financial crime.
Robust CDD including beneficial ownership identification and sanctions screening is critical. See our TCSP compliance page for sector-specific guidance.
Related terms
- DNFBP - the regulatory category that includes TCSPs
- Beneficial Owner - a key CDD element for TCSP clients
- CDD - the due diligence process TCSPs must apply