In recent years, the UK government has introduced a number of measures to improve financial transparency and crack down on money laundering. One of the key tools in this effort is the HMRC Trust Registration Service (TRS), a digital system managed by HM Revenue & Customs that requires certain trusts to be registered.

The service is designed not just as a bureaucratic exercise, but as a crucial part of the UK’s compliance with the EU’s Fifth Money Laundering Directive (5MLD), which seeks to reduce financial crime by increasing the transparency of who ultimately benefits from trusts and similar legal arrangements.

In this article, we’ll look at how the HMRC Trust Registration Service works, why it matters for preventing money laundering, and what trustees in the UK need to know. We’ll also explore how professional firms like The Infinity Group can help trustees meet their obligations with confidence.

What Is the HMRC Trust Registration Service?

The Trust Registration Service (TRS) was introduced in 2017. Initially, it required only taxable trusts—those with a liability for Income Tax, Capital Gains Tax, Inheritance Tax, or Stamp Duty Land Tax—to register.

However, since 2020, the rules have expanded significantly. Now, most UK trusts, and some non-UK trusts with UK connections, must register—even if they have no tax liability. This change was introduced to align with the EU’s 5MLD, with the aim of improving financial transparency and helping law enforcement agencies identify who controls trusts and where their funds are coming from.

The TRS now acts as a central, searchable register of trust information. Trustees must submit details of the trust, including:

• The name of the trust
• The date it was created
• Details of trustees
• Details of settlors (the person who created the trust)
• Details of beneficiaries
• The type of trust

This creates a comprehensive database of beneficial ownership, making it much harder for criminals to use trusts as vehicles to hide illicit funds.

Why Are Trusts a Risk for Money Laundering?

To understand why the TRS matters, it’s important to recognise how trusts can be misused.

Trusts are perfectly legitimate legal arrangements often used in estate planning, tax management, and to protect family assets. However, without oversight, they can also be exploited:

1. Concealing true ownership – Criminals can use trusts to obscure the identity of who actually benefits from assets, making it harder for authorities to track illicit wealth.
2. Cross-border movement of funds – Trusts can move money across jurisdictions, allowing individuals to transfer funds without raising suspicion.
3. Layering assets – By placing assets into complex trust structures, money launderers can make it more difficult to follow the trail of dirty money.

The TRS addresses these risks by ensuring there is a transparent and centralised record of who is behind each trust, giving regulators and enforcement agencies the tools they need to investigate suspicious activity.

How the TRS Helps Prevent Money Laundering

The HMRC Trust Registration Service plays a key role in preventing money laundering by increasing transparency and accountability. Here are several ways it helps:

1. Creating a Centralised Beneficial Ownership Register

The TRS ensures that all relevant parties connected to a trust—settlor, trustees, and beneficiaries—are recorded in one place. This makes it harder for individuals to remain hidden behind legal structures and prevents the anonymity that money launderers rely on.

2. Providing Law Enforcement with Access

Certain law enforcement bodies and regulatory authorities can request access to TRS data if they have evidence of money laundering or terrorist financing activity. This allows investigations to move more quickly and makes it easier to connect financial crimes to real individuals.

3. Encouraging Due Diligence by Trustees

By requiring trustees to gather and report detailed information about the trust, the TRS encourages a culture of compliance. Trustees are now more aware of their responsibilities and the importance of conducting due diligence on the people and assets they are managing.

4. Supporting International Standards

The UK is committed to international anti-money laundering standards set by bodies like the Financial Action Task Force (FATF). By implementing the TRS, the UK ensures it remains aligned with global best practices in financial transparency.

Trustee Responsibilities Under the TRS

For trustees, the TRS brings a number of important responsibilities:

• Registration – Trustees must register eligible trusts by the relevant deadlines.
• Accuracy – Information submitted must be accurate and kept up to date. Any changes to the trust must be reported within 90 days.
• Compliance – Trustees must ensure they meet their legal obligations, as failure to register can result in financial penalties.

For many trustees, particularly those managing family trusts or small arrangements, the requirements can feel complex. That’s why professional support is often essential.

How The Infinity Group Can Help

At The Infinity Group, we specialise in payroll, compliance, and financial services that keep businesses and individuals aligned with HMRC requirements. Our team has extensive experience helping trustees and business owners navigate complex regulations like the HMRC Trust Registration Service.

By working with The Infinity Group, trustees can:

• Ensure accurate and timely trust registration
• Stay fully compliant with HMRC deadlines and reporting rules
• Gain peace of mind knowing that all beneficial ownership details are correctly recorded
• Avoid costly penalties and reduce the risk of compliance errors

In an environment where financial transparency and anti-money laundering efforts are more important than ever, having expert guidance makes all the difference.

Why This Matters for the UK

The introduction of the TRS represents a significant step forward in the UK’s fight against financial crime. While it does create more administrative work for trustees, the wider benefit is clear:

• More accountability – Criminals can no longer rely on trusts as a “black box” for hiding assets.
• Better enforcement – Investigators have stronger tools to uncover fraud, money laundering, and terrorist financing.
• Stronger reputation – The UK maintains its status as a global leader in financial regulation and transparency.

Ultimately, the TRS is about ensuring that the UK financial system cannot be exploited by bad actors. For honest trustees and beneficiaries, compliance is a small price to pay for a safer and more trustworthy system.

Final Thoughts

The HMRC Trust Registration Service is far more than a form-filling exercise—it’s a cornerstone of the UK’s anti-money laundering strategy. By requiring trustees to disclose the key details of their trusts, the system helps prevent financial crime, protect the economy, and strengthen public trust in financial arrangements.

For trustees, understanding the rules and meeting obligations is vital. And with the support of experienced professionals like The Infinity Group, compliance can be straightforward and stress-free.

In an era where transparency is non-negotiable, the TRS ensures that trusts serve their legitimate purposes—while shutting the door firmly on money launderers.