Here is the exact information from the Financial Action Task Force (FATF) Guidance for a Risk-Based
Approach for Trust and Company Service Providers:
"Understanding the management and ownership structure of a trust is crucial in assessing the ML/TF
risk it poses. This includes the identity of all settlors, trustees and beneficiaries, and their respective
roles and responsibilities, as well as the nature and purpose of the trust."
"TCSPs should obtain and maintain up-to-date information on the purpose and intended nature of
the business relationship, the source of funds and wealth, and where relevant, the source of funds or
wealth of the settlor and beneficiaries."
Based on this information, the correct answers are A and D. Trust and Company Service Providers
must understand the responsibility and authority in the structure, as well as the general purpose
behind the structure in order to assess the overall risk of the trust and ensure that any transactions
with the trust are legitimate.
