Trust or Company Service Providers (TCSPs) are businesses or individuals that provide services related to the incorporation, management, or administration of legal entities such as trusts and companies. These services can include providing registered office addresses, nominee directors, and shareholders, and maintaining corporate records. TCSPs can also provide advice on the structure and governance of legal entities and assist in the transfer of assets.
TCSPs are regulated in many jurisdictions to prevent money laundering and other financial crimes. In the United Kingdom, for example, TCSPs are regulated by the Financial Conduct Authority (FCA) and must comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. In the United States, TCSPs are subject to the Bank Secrecy Act (BSA) and must comply with AML regulations enforced by the Financial Crimes Enforcement Network (FinCEN).
TCSPs can include lawyers, accountants, and other financial professionals. They play an important role in the financial services industry by helping clients to manage their assets and structure their businesses in a way that is compliant with local laws and regulations. However, TCSPs can also be vulnerable to exploitation by criminals seeking to launder money or finance terrorist activities. It is therefore essential that TCSPs operate in a transparent and accountable manner and comply with all relevant AML and CTF regulations.