GIFCS updates international Standard for the Regulation of TCSPs
In response to a growing level of business by trust and company service providers (TCSPs), the Group of International Finance Centre Supervisors (GIFCS) first introduced an international Standard for the Regulation of TCSPs in 2014.
The Standard has now been reviewed to reflect experience gained with implementation and evolving supervisory practice. The revised Standard can be viewed at GIFCS TCSP Standard.
The principal changes to the Standard are as follows.
- Provisions relating to Financial Crime, including the addition of Countering Proliferation Financing, have been updated. In line with the FATF Recommendations, additions have been made in respect of jurisdictional National Risk Assessments, suspicious activity reporting, and sanctions.
- A greater focus on a ‘risk-based approach’, including in respect of external audits of financial statements and onsite supervisory visits.
- An updating of the Guidance Notes, including in respect of cyber security and minimum net assets.
- A strengthening of the section on Corporate Governance especially in respect of
succession planning, business continuity and management of regulatory breaches. - Further emphasis on the importance and value of supervisory colleges.
John Aspden, Chairman of GIFCS, said that “The GIFCS Standard on the Regulation of TCSPs has become an international benchmark for the supervision of intermediaries administering trust and company business worldwide”.
He explained that “TCSP activity can give rise to higher risks, and the GIFCS Standard provides a way in which these can be managed in a compliant manner and to protect clients’ interests. We use the Standard to evaluate, and where necessary secure a strengthening of, members’ regimes in this area. Evaluation reports are published”.
Notes for editors
The GIFCS is a long-established group of financial services supervisors with a core interest of promoting the adoption of international regulatory standards especially in the banking, fiduciary and AML/CFT arena.
The GIFCS was established in 1980. Today its membership accounts for a significant market share of global international banking and fund assets. The Group, which meets formally twice a year, has become a very positive contributor to promoting compliance among its membership with the Basel Core Principles and the FATF Recommendations for AML/CFT. Members also contribute to some of the work of IOSCO.
The GIFCS has become recognised as a leading authority on the regulation of trust and company service providers, the interface of these intermediaries with AML/CFT standards, and on the principle of identifying beneficial owners behind trust and company structures. It has issued an international Standard for the regulation of the TCSP sector, now updated, which is being implemented by members and against which their compliance is formally evaluated.