Trust Regulatory Regime Updated on 20 June 2025 to Enhance Trust Enforcement, Record-keeping Obligations and Disclosures

On 20 June 2025, Part 3 and sections 25 and 26 of the Mutual Assistance in Criminal Matters (Amendment) and Other Matters Act 2024 (“Amendment Act“), which was passed in Parliament on 11 November 2024, came into operation. The Amendment Act serves to, among others, update the trust regulatory regime to enhance trust-related: (i) offence provisions; (ii) enforcement powers; (iii) record-keeping obligations; and (iv) disclosures. For more information on the Amendment Act, please see our October 2024 Legal Update titled “Bill Passed in Parliament to Enhance Framework for International Assistance in Criminal Matters and Extradition, Effect FATF Recommendations”.

Then Minister of State, Ministry of Law and Ministry of Transport, Mr Murali Pillai SC’s speech during the second reading of the Mutual Assistance in Criminal Matters (Amendment) and Other Matters Bill on 11 November 2024 heralded the creation of a new public office called the Commissioner of Trust Enforcement (“CTE“) under the Ministry of Law reposed with the power to investigate offences under Part 7 of the Trustees Act 1967 (“TA“). The Minister of State said in Parliament then: “With these amendments, the CTE and any authorised officers he may appoint, will be empowered to investigate any breach of the trustees’ obligations introduced under Part 7 of the Trustees Act.“

The key changes in the Amendment Act are summarised below.

1. The Amendment Act amends the TA to:

• • enhance enforcement powers: Provide for the appointment of the CTE and authorised officers with various powers, including of: (i) investigation; (ii) requiring any person to attend for examination and examining them; (iii) requiring the production of information or documents; (iv) search and entry; and (v) seizure of property in prescribed situations;
  • enhance offence provisions: Introduce new offence provisions, including for: (i) producing false information to the CTE; (ii) refusing or failing to produce required information; (iii) failing to comply with a notice requiring attendance at examination; (iv) knowingly obstructing or hindering the authorities or attempting to do so; and (v) disposing of or dealing with any property contrary to issued orders; and
  • enhance record-keeping obligations and maximum fines: Allow regulations relating to record-keeping to be made (i.e. providing that a trustee of a relevant trust must: (i) retain any prescribed document relating to the trust; and (ii) keep and maintain up-to-date records of any information relating to the administration of the trust or other relevant information relating to the trust, as may be prescribed) and increase the maximum fine for an offence in this regard from S$1,000 to S$25,000.

2. The Amendment Act also makes consequential amendments to the Banking Act 1970 and the Trust Companies Act 2005 to permit: (i) a bank to disclose customer information; and (ii) a licensed trust company to disclose confidential information, respectively, to an officer duly authorised under the TA for certain purposes under the TA.

Further, on 20 June 2025, the following regulations also came into operation: (i) the Trustees (Transparency and Effective Control) (Amendment) Regulations 2025 (“Amendment Regulations“) which serve to amend the Trustees (Transparency and Effective Control) Regulations 2017 (“Transparency Regulations“); and (ii) the Trustees (Composition of Offences) Regulations 2025 (“Composition Regulations“).

The key changes are summarised below.

1. Enhanced information-gathering obligations: The Amendment Regulations amend the Transparency Regulations to require trustees of a relevant trust to:

• • take reasonable steps to: (i) obtain certain prescribed information relating to the administration of the trust; and (ii) ensure verification of the same by means of reliable and independently sourced source data; and
  • obtain and verify additional information relating to relevant parties and effective controllers of relevant parties, e.g.: (i) the relevant party’s or effective controller’s place of birth; (ii) where the relevant party is an entity, the role of every connected individual to that entity; (iii) where the relevant party is a class of possible beneficiaries under the trust, a description of that class; and (iv) the relevant party’s role in relation to the trust. In the case of relevant parties, such trustees may choose not to take any steps if there is reason to believe that doing so will tip off the relevant party as to the existence of the trust.

2. Enhanced disclosures: The Amendment Regulations amend the Transparency Regulations to:

• • require trustees of a relevant trust who form a business relationship or enter into a prescribed transaction with prescribed persons after 20 June 2025 to take reasonable steps to inform such persons that they are acting for the relevant trust at or before the time the relationship is formed or the transaction is entered into; and
  • additionally include developers into the list of prescribed persons who must be so informed.

3. Enhanced record-keeping obligations: The Amendment Regulations amend the Transparency Regulations to require trustees who cease to be trustees of a relevant trust on or after 20 June 2025 to retain possession of the original or a copy of prescribed documents (i.e. the trust instrument and any letter of wishes, side letter or equivalent document from the settlor of the trust) for at least five years after the date of such cessation.
4. Enhanced maximum fines:

• • The Amendment Regulations amend the Transparency Regulations to increase the maximum fine for prescribed offences under the Transparency Regulations from S$1,000 to S$25,000; and
  • The Composition Regulations empower the CTE to compound such prescribed offences.