Nadia J Taylor Associate. PRIVATE TRUST COMPANIES Establishing a PTC and Acting as a Registered Representative. A PTC can be either: an IBC; or a Domestic company. HOW IS A PTC ESTABLISHED?.
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Nadia J TaylorAssociate
PRIVATE TRUST COMPANIESEstablishing a PTC and Acting as a Registered Representative
A PTC can be either:
an IBC; or
a Domestic company
The name of a PTC cannot include words such as “Trustee”, “Trust Company” or “Private Trust Company” without the prior approval of Central Bank.
Minimum Capital Requirement - $5,000.
Specific objects and purposes.
Designated Persons or Designated Person.
Objects and Purposes of a PTC
“to act as trustee only for a trust created or to be created at the direction of a Designated Person or Designated Persons.”
A Designated Person(s) is an individual or individuals described as such within the Designating Instrument provided that if more than one each Designated Person must be related to the Designated Person so described by consanguinity or some other family relationship.
A Designated Person may be deceased.
The names of the Designated Person(s) will not be a part of the memorandum and articles of association.
A PTC must have one Special Director with:
knowledge of trust administration; or
five years experience in a discipline relevant to trust administration which includes one or more of law, finance, commerce, investment management or accountancy.
A PTC is not required to have a Special Director if:
a licensee serves as a RR of the PTC.
Must be either:
A licensee of the Central Bank; or
A Financial and Corporate Services Provider (duly licensed under the Financial and Corporate Services Provider Act, 2000).
Restricted only to the business of a PTC.
A RR may provide the services of:
Where a RR acts as a Bahamas Agent for a PTC, it must enter into a service agreement to provide administrative services to the company.
A licensed FCSP wanting to act as a RR must:
Apply to the Central Bank for written approval of the Governor to act as a RR;
Engage in RR services through a subsidiary company (Regulations 6(1)).
The Governor of the Central Bank may approve or deny an FCSP seeking to be a RR based on:
The fitness of the FCSP.
The business record and relevant experience of the FCSP or its beneficial owners.
Whether it has sufficient human and physical resources to act as a RR.
The best interest of the financial industry.
A RR must be resident in The Bahamas and maintain a minimum share capital of $50,000.
The fee payable to the Public Treasury to act as a RR of a PTC is $2,500 annually.
A RR is the main point of contact for the Central Bank in relation to PTCs.
A RR is required to verify the identities of :
the settlor and any person providing the funds or assets which are subject to the trust;
The Designated Person;
The Protector of any trust in which the PTC is a trustee;
Vested beneficiaries of any trust of which a PTC is a trustee.
RR must maintain the following books and records at its office in The Bahamas:
Memorandum and Articles of Association;
CV of Special Director;
Trust instruments for each trust;
A list of all the PTCs of which a RR acts;
The “Form of Acknowledgement to be executed by the settlor of the trust ” (to be produced where possible).
[INSERT COMPANY NAME]
I, [DIRECTOR], hereby confirm that in relation to [INSERT COMPANY NAME] a Company [incorporated/to be incorporated] under the laws of The Bahamas, the Designated Person or Designated Persons for the purposes of Section 2 of the Act shall be: [INSERT INDIVIDUAL (S) NAME (S)].
[INSERT COMPANY NAME]
I, [INSERT SETTLOR’s NAME], hereby acknowledge that in relation to [INSERT COMPANY NAME] (the “Company”) a company [incorporated/to be incorporated] under the laws of The Bahamas:
that the Company’s directors are not required by law to possess or exhibit expertise in trust administration and, therefore, said directors may, in fact, not be possessed of or exhibit such skill,
that Company is not required by law to provide any fidelity bond,
that the capital of the Company is not required by law to exceed Five Thousand Dollars and may, therefore, be minimal; and
that Company is not required by law to perform an annual audit.
Accordingly, accepting the foregoing and fully understanding the legal implications hereof, I hereby waive any and all rights of complaint in respect of these matters.
BTCRA section 3(2):
“No trust company shall carry on trust business from within The Bahamas whether or not such business is carried on in The Bahamas unless it is in possession of a valid licence granted by the Governor authorising it to carry on such business.”
A PTC is exempt from the requirements of section 3(2) of the BTCRA if:
The PTC complies with the definition of a “private trust company” under the BTCRA as amended;
It has a single Designating Instrument;
It does not solicit trust business
Upon appointment as a RR of a PTC, a RR has a duty to certify to the Governor of the Central Bank that the PTC meets the requirement for exemption from section 3(2) of the BTCRA either:
Within six (6) months of the date of coming into force of the Regulations; or
If a PTC is either an IBC or Domestic Company incorporated after the date of coming into force of the Regulations, within three 3 months of its incorporation.
A RR certifies exemption by obtaining from the directors of each PTC for which it provides services a duly completed Compliance Certificate in the form set out in the Fourth Schedule to the Regulations.
The Certificate should be accompanied by a briefing sheet on each PTC containing the name of the settlor and a list of trusts to be administered by the PTC.
A RR must obtain a duly completed Compliance Certificate on, or before 31st December of each year.
We, the undersigned directors (the “Directors”) of [COMPANY NAME], a Private Trust Company
established under the laws of the Commonwealth of The Bahamas pursuant to the Banks and Trust
Companies Regulation Act, 2000 (the “Company”) hereby declare that between [DATE] and [DATE]:
1. The Company has served only as trustee for trust or trusts for Designated Person or Designated
Persons or an individual or individuals who are related by consanguinity or other family relationships to
the Designated Person or Designated Persons and has not carried on any business or activity which
was prohibited; and
2.The Directors have acted honestly and in good faith with a view to the best interest of the
And we each make this solemn declaration conscientiously believing it to be true.
Establishment and Maintenance of the PTC
Fees due on commencement $5,000
Registered Office/ Agent $? (discretionary)
Establishment of a RR
Application to act as RR$2,500
Provision of RR services
Fees for acting as:
(i)secretary; (ii)director; or
(iii)Bahamas Agent. $? (discretionary)
Establishment of Trusts
drafting a trust deed; and $?
establishing a trust.$? (discretionary)
Converting an existing IBC or Domestic Company into a PTC.
Converting a restricted licence Trust Company into a PTC.
Converting an existing Foreign Company into a PTC.
Nadia J TaylorAssociatentaylor@higgsjohnson.com