Part 3 – Register of Overseas Entities Register of overseas entities Section 161: Registrable beneficial owners: cases involving trusts
This section amends Schedule 2 of the Economic Crime (Transparency and Enforcement) Act 2022 (registrable beneficial owners). It has the effect of expanding the definition of registrable beneficial owner, so that when a beneficial owner is a legal entity (corporate) trustee, they are regarded as a registrable beneficial owner (section 161(2)). This means that they must be registered as a beneficial owner and must provide information about the associated trust, wherever the trust appears in the chain of ownership.
	A new power is also inserted by section 161(5) that allows the Secretary of State to expand the meaning of "registrable beneficial owner" when the overseas entity is part of a chain of entities that includes a trustee. Any regulations made under this power must be made using the affirmative procedure.
	Section 161 (6) revokes Regulation 14 of the Register of Overseas Entities (Delivery, Protection and Trust Services) Regulations 2022 (SI 2022/870). Regulation 14 (description of legal entity subject to its own disclosure requirements) brought some legal entity trustees into scope of the definition of registrable beneficial owner. This amendment brings all legal entity trustees into scope and therefore Regulation 14 is no longer required.