Seychelles Trusts are private legal arrangements designed to manage and distribute an organisation’s or person’s assets.
They are usually established with the expectation of privacy, mirroring the confidentiality afforded to personal financial affairs like bank accounts or health records.
Privacy vs. Secrecy:
- Trusts are confidential by nature, not inherently secret.
- Beneficiaries may not always be aware of the trust’s existence, reflecting a settlor’s desire for discretion.
- In extreme cases, certain beneficiaries may only receive funds if closer relatives are no longer living.
- In Seychelles, trust names are registered but the deed is not registered.
Legal Requirements:
- Seychelles Trusts must be registered.
- However, details such as the identities of the settlor, trustees, or beneficiaries, and the value of the trust fund, are not publicly disclosed.
- Trustees are not obligated to report the establishment of a trust to the Seychelles tax authorities, unless the trust derives Seychelles-sourced income or it is expected to derive Seychelles-sourced income.
Regulatory Compliance:
- Trustees must verify the identities of the settlor, beneficiaries, protectors and any other persons closely connected to a Seychelles Trust.
- This information must be provided to authorities if there’s suspicion of illegal activities.
- Trustees also have a duty to report any suspicious activities to the authorities.
- Trustees must establish a register of beneficial owners (controlling persons) and upload the data into a centralised government databased (that is not publicly accessible).
In essence, while trusts maintain a level of confidentiality, they operate within a framework that balances privacy with legal and regulatory transparency. They are not “secret” in the sense that they are hidden from regulatory oversight but are “private” to protect the interests of the persons involved.
Our team at A.C.T. in Seychelles can help you quickly and cost-effectively establish and register a Seychelles trust, and properly setup and manage the roles of settlors, trustees, and beneficiaries, to ensure you have an effective Seychelles Trust.