As enacted

Contents

4. Insertion of new sections 19A,19B and 19C in the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

The following new sections are hereby inserted immediately after section 19 of the principal enactment and shall have effect as sections 19A, 19B and 19C of that enactment:—

Duty of the

Registrar-General to provide information of trusts.

“Registrar-General to maintain a register of trusts.

19A.

“Trustee to

(1)

A trustee shall keep records of all such information as may be prescribed, on the identity of the following persons at the time of creation of an express trust under section 6:—

information record.

(a)

the trustee himself;

(b)

the co-trustees, if any;

(c)

the author of the trust;

(d)

the beneficiary, to the greatest extent possible; and

(e)

any other person engaged in the execution of the trust in the capacity of an agent, a legal representative, a manager, an investment advisor or a tax advisor, an accountant or otherwise.

(2)

The information under subsection (1)

shall be verified and updated every three months, to the greatest extent possible.

(3)

Where an express trust has been created for the benefit of a class of persons, all such information as may be prescribed, on the identity of every person belonging to such class of persons, to the greatest extent possible, shall be kept in record under subsection (1).

(4)

Where an express trust has been created for the benefit of a person other than a natural person, the information on the identity of the natural person who is the beneficial owner of the trust, shall be kept in record under subsection (1).

keep updated on identity in

(5)

A trustee shall maintain records of information of any person referred to in subsections (1), (2), (3) and (4), at least for a period of six years from the date on which such person’s involvement with the trust ceases to exist.

(6)

For the purposes of this section,

“beneficial owner” means a natural person or persons who ultimately own the benefits of an express trust or control the trust property or the person or persons on whose behalf an express trust is being created and includes the person or persons who exercise ultimate effective control over a person or a body of persons, whether incorporated or unincorporated.

19B.

Trustee to provide updated information

(1)

(a) A trustee and a co-trustee, if any, of an express trust shall provide to any relevant authority, any information in the record maintained under section 19A, in respect of any person referred to in that section whenever such trustee is required to provide such information by such authority.

relevant authorities.

(b)

For the purpose of paragraph (a), the

“relevant authority” means –

(i)

any public authority assigned with the responsibility of preventing money laundering and suppression of terrorist financing; or

(ii)

any authority that performs the function of investigating and prosecuting money laundering and terrorist financing associated offences and seizing or freezing and confiscating assets relating to such offences.

of identity to

Penalty for contravention of sections 6A, 19, 19A and 19B.

(2)

(a) A trustee of an express trust shall, when entering into a continuing business relationship or conducting any transaction or carrying out any occasional transaction, exceeding a financial limit as may be prescribed, with any institution carrying out financial business or designated non-finance business, provide updated information on the identity of any person referred to in section 19A or of the trust property which is subject to the business relationship, as is required by such institution.

(b)

For the purpose of paragraph (a), the expressions “designated non-finance business”, “finance business” and “occasional transaction’’, shall have the same meanings as in the Financial Transactions Reporting

Act, No. 6 of 2006.

19C. A trustee who acts in contravention of the provisions of sections 6A, 19, 19A and 19B shall be guilty of an offence under this Act and shall, on conviction by a Magistrate, be liable to a fine not exceeding two hundred thousand rupees or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.”.

Read on from s 5