Impact assessment

Trust Registration Service - screening equality impact assessment

Published 20 April 2023

Project objectives

The Trust Registration Service (TRS) fulfils the trust-related registration and data-sharing requirements within the UK’s Money Laundering Regulations 2020 (MLRs).

These were originally developed to comply with the EU’s fourth and fifth Anti-Money Laundering Directives, and following EU Exit were retained in order to fulfil the UK’s own commitment to tackle money laundering and terrorist financing, and to comply with wider international commitments to the Financial Action Task Force and the International Monetary Fund.

TRS enables trustees and agents to register and make changes to the records for taxable and UK express trusts (including non-taxable trusts), subject to specific exclusions, as well as some non-EU trusts under certain circumstances.

The MLRs and policy intent require HMRC to share a limited selection of trust data from within the register under certain circumstances. The data sharing process is a clerical/manual process and was delivered on 1 September 2022.  Any legal person or organisation can make a request for data on the basis that the information is required to investigate money laundering and terrorist financing, but they can only receive that data if they can demonstrate a Legitimate Interest in the data in question.

Legitimate interest is assessed in terms of bona fide investigations into money laundering / terrorist financing. In addition, any person who believes a trust may have a controlling interest in a non-European Economic Area (EEA) company (aka Third Country Entity) may also request an extract of the registered information: These requests are not restricted by the legitimate interest test.

The MLRs and policy intent require a discrepancy reporting process to be available, this is a clerical/manual process and was also delivered on 1 September 2022.  The discrepancy reporting process is the requirement for Relevant Persons (eg banks and other institutions required to carry out due diligence checks) to report any material discrepancies between the registered information and any information they hold when entering a business relationship with a trust (unless those discrepancies can be resolved direct with the trust – that is, the reporting process is a last resort). From 1 April 2023 this requirement to carry out discrepancy checks is extended to be included as part of the ongoing monitoring of existing business relationships.

The MLRs also require the introduction of a penalty regime, this is the ability for HMRC to clerically issue penalties in cases of deliberate non-compliance, the IT systems were delivered on 12 December 2022. The penalty is set at £5,000 for those who deliberately fail to register or deliberately fail to keep the register up to date.

Customer groups affected

The customer groups affected are:

• agents
• trustees
• those requesting data from the register
• those reporting discrepancies on the register

What customers will need to do

Agents and trustees need to be aware of:

• the capability of data on the trust registration service being shared externally
• the ability of relevant persons to report discrepancies
• the ability for HMRC to charge penalties

Those requesting data, for example investigative journalists, need to be aware of and follow the new process for requesting data if they are required to do so.

Those reporting discrepancies (relevant persons) need to follow the new process for reporting discrepancies if they are obliged to do so.

How customers will access this service

Customers will access each service as follows:

Data sharing and discrepancy reporting:

• agents and trustees can access guidance on the gov.uk pages to build awareness
• those requesting data will need to follow gov.uk guidance and fill out a gform to submit a data sharing request
• those reporting discrepancies will need to follow gov.uk guidance and fill out a gform to submit a discrepancy report

Penalties:

• agents and trustees are able to access guidance on the GOV.UK pages to build awareness
• customers will receive a letter from HMRC detailing the penalty regime if the customer triggers a penalty

When customers need to do this

We are not expecting customers to report discrepancies or request data by a certain date; The process was made available on 1 September 2022.

We are not expecting customers to do anything around penalties, they just need to be aware penalties can be charged. Customers will need to register and update records by specific deadlines, or they may receive a penalty if the offence was deliberate non-compliance.

Assessing the impact

We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:

• racial groups
• sex
• gender reassignment
• sexual orientation
• pregnancy and maternity
• marriage and civil partnership
• people with dependants and those without (carers)
• political opinion (in Northern Ireland only)

There is no evidence to suggest any specific impacts on those customers within any of these protected characteristic groups. Extra support will be provided as required.

Disabled

Impact on customers

Consideration should be given to those customers who use screen readers to access digital content. Consideration should be given to potential accessibility issues for customers within this protected characteristic group who will not be able to defer responsibility to an agent.

Proposed mitigation

The services must be in line with HMRC, Home Office and GDS usability and accessibility guidelines. All GOV.UK web content adheres to national and international standards such as W3C.

HMRC offers Extra Support Team (EST)services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance including additional assistance for customers who are deaf or hearing impaired, blind or partially sighted

Clear updated guidance is provided on gov.uk to help customers. Customers can contact HMRC via the Trust helpline who will refer a customer who needs extra help to the Extra Support Team.

There is no paper version of the gForm which may impact those who are unable to interact digitally, however in most cases we would expect anyone who is investigating money laundering, or those reporting a discrepancy to be digitally able. In the unlikely event they are not, the customer can be supported by HMRCs Extra Support Team by contacting the Trusts helpline who would refer these customers.

Age

Impact on customers

There is no evidence to suggest any specific impacts on those customers within this protected characteristic group; although consideration has been given regarding impact on older customers, who may be more hesitant to engage digitally (although it is recognised this may not be the case for all those in the older population).

Proposed mitigation

HMRC offers Extra Support Team services which can be accessed by those customers who cannot, for whatever reason, interact with HMRC digitally or who need additional support and reassurance.

Religion or belief

Impact on customers

Some religious groups follow rules related to computer use that may affect access to digital services.

Proposed mitigation

UK Tax Law provides for the tax treatment of Islamic Financial Products

An individual will be required to use an intermediary to submit a declaration on their behalf if their belief restricts them from doing so.

People who use different languages (Including Welsh Language and British Sign Language)

Impact on customers

TRS customers consist of diverse people who may use British sign language. TRS customers consist of diverse people whose first language may not be English, including Welsh speaking customers.

Proposed mitigation

For any customers whose first language is not English or Welsh, alternative arrangements can be made for friends and family to interpret or speak on a customer’s behalf. Currently TRS forms and communications can be provided in Welsh and any letters, online services or contact with the customer can be provided in Welsh. The TRS and supporting GOV.UK guidance is translated to Welsh.

Opportunities to promote equalities

We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.

No opportunities have been identified.

A full equality impact assessment is not recommended.