Welcome to Herbert Smith Freehills’ new monthly private wealth industry updates in Asia.
Every month we survey ten Asian jurisdictions for legal developments concerning trust and estate planning which are of interest to the private wealth industry, and provide a succinct summary in a table format. The jurisdictions covered in the update are Hong Kong, Singapore, China, Taiwan, Japan, India, Malaysia, Indonesia, Thailand and the Philippines. We hope that these updates will prove to be a useful resource to keep private clients, business people, and lawyers abreast of legal updates in the region.
Hong Kong Court of Appeal upholds anti-Bartlett clause
In Zhang Hong Li v DBS Bank and others the Court of Final Appeal ruled that the anti-Bartlett clause contained in the trust deed effectively excluded any "high level supervisory duty" with any purported residual obligation on the part of the former trustee in relation losses to a trust resulting from risky investment decisions made by an investment advisor on behalf of the trust's underlying private investment company. See our summary and detailed blogs for further information.
FATF releases follow-up report on Singapore’s AML regime
Following Singapore’s mutual evaluation in 2016, it has been in an enhanced follow-up process with FATF and has been reporting back to FATF on the measures taken to improve its AML regime. In the follow-up report, FATF gave Singapore improved ratings in four areas including in relation to transparency and beneficial ownership of companies and trusts. Singapore is now compliant on 20 of the 40 Recommendations and largely compliant on 17 of them. It remains partially compliant on 3 of the 40 Recommendations and Singapore is to continue to report back to FATF on its progress.
Withholding property tax to be introduced
The Finance Act that is due to be passed in Malaysia will introduce withholding tax of 7% on people who purchase property from non-Malaysian resident companies in cash (wholly or partly). Following the purchase and within 60 days, the tax must be remitted to the tax authorities.
Companies Commission of Malaysia concludes consultation on beneficial ownership reporting
The Companies Commission of Malaysia issued on 8 November 2019 a Consultative Document on the Guidelines for the Reporting Framework of Beneficial Ownership of Legal Persons. The deadline for submission of feedback was 4 December 2019, so there is likely to be developments on this front in the near future.
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