1 00:00:00,320 --> 00:00:01,160 Speaker 1: Crayin Bridge. 2 00:00:01,960 --> 00:00:05,440 Speaker 2: Associate Justice Minister Nicole McKee has today announced plans to 3 00:00:05,480 --> 00:00:08,160 Speaker 2: loosen up the anti money laundering laws when it comes 4 00:00:08,200 --> 00:00:11,880 Speaker 2: to family trusts. Mario Thorn is an associate at McVeigh 5 00:00:11,960 --> 00:00:14,640 Speaker 2: Fleming and he's part of the Society of Trust and 6 00:00:14,680 --> 00:00:16,600 Speaker 2: a State Practitioners. He's with us to break it down. 7 00:00:16,680 --> 00:00:19,560 Speaker 2: Marag Good evening, thanks for being on the program. 8 00:00:19,640 --> 00:00:21,279 Speaker 1: Good evening, my pleaser, thanks for having me. 9 00:00:21,680 --> 00:00:26,000 Speaker 2: So what exactly is going on here? It's to make 10 00:00:26,239 --> 00:00:30,560 Speaker 2: the process of selling to or from a trust a 11 00:00:30,600 --> 00:00:32,040 Speaker 2: property easier, is it. 12 00:00:33,120 --> 00:00:37,400 Speaker 1: Yeah, I think in a nutshell basically because and I 13 00:00:37,440 --> 00:00:42,560 Speaker 1: don't often agree with the phrase using cutting through red tape, 14 00:00:42,560 --> 00:00:44,280 Speaker 1: but I actually think that's kind of hitting the nail 15 00:00:44,280 --> 00:00:46,879 Speaker 1: on the head in this case. There is a lot 16 00:00:46,920 --> 00:00:52,199 Speaker 1: of red tape around due diligence that reporting entities are 17 00:00:52,240 --> 00:00:55,680 Speaker 1: required to do in relation through trusts that are buying 18 00:00:55,800 --> 00:01:00,639 Speaker 1: or selling residential property. And yeah, quite frankly, the burdens 19 00:01:01,160 --> 00:01:05,959 Speaker 1: quite high. And yeah, it's a simplified process would be 20 00:01:06,080 --> 00:01:07,760 Speaker 1: a welcome change. 21 00:01:07,440 --> 00:01:10,600 Speaker 2: Because the worry is that you've got money laundering, potentially 22 00:01:10,640 --> 00:01:13,240 Speaker 2: money laundering involved, so you've got people who have got 23 00:01:13,240 --> 00:01:16,040 Speaker 2: nothing to do with money laundering, having to provide documents 24 00:01:16,440 --> 00:01:19,480 Speaker 2: you know, left, right and center documents as long as 25 00:01:19,480 --> 00:01:22,280 Speaker 2: there are. How long does that process take. 26 00:01:24,400 --> 00:01:27,840 Speaker 1: Yeah, obviously it depends on a case by case basis, 27 00:01:27,880 --> 00:01:32,640 Speaker 1: but generally it's yeah, the time. It can be quite 28 00:01:32,640 --> 00:01:36,800 Speaker 1: time consuming overall, particularly where you're asking questions for information 29 00:01:37,240 --> 00:01:40,920 Speaker 1: that is not readily available or doesn't even exist because 30 00:01:41,360 --> 00:01:47,280 Speaker 1: the act, the a MLC FT Act, has put a 31 00:01:47,319 --> 00:01:51,320 Speaker 1: lot of the burden on reporting entities to make a 32 00:01:51,360 --> 00:01:53,840 Speaker 1: lot of these inquiries themselves, and everyone takes a very 33 00:01:53,840 --> 00:01:57,920 Speaker 1: conservative approach, so they tend to throw throw everything at 34 00:01:57,920 --> 00:01:59,560 Speaker 1: the wall to see what sticks kind of approach, and 35 00:01:59,600 --> 00:02:03,640 Speaker 1: they ask a lot of information, like you know, dating 36 00:02:03,680 --> 00:02:05,920 Speaker 1: back to the inception of the trust that could be 37 00:02:06,000 --> 00:02:08,240 Speaker 1: sort of thirty forty years old some of these trusts, 38 00:02:08,960 --> 00:02:10,880 Speaker 1: and some of that information has lost the time. Some 39 00:02:10,919 --> 00:02:13,800 Speaker 1: of that information never existed because the trust were just 40 00:02:13,840 --> 00:02:20,560 Speaker 1: a simple entity created to own a family's home. And 41 00:02:20,600 --> 00:02:23,760 Speaker 1: then you're left with trustees and mums and dad scratching 42 00:02:23,800 --> 00:02:26,880 Speaker 1: their head going, how am I supposed to produce these 43 00:02:26,880 --> 00:02:29,880 Speaker 1: things when I don't even know if they exist or not? Okay, 44 00:02:29,440 --> 00:02:31,079 Speaker 1: So yeah, it can take a bit of time. 45 00:02:31,280 --> 00:02:35,240 Speaker 2: Sounds sensible so far. How do you what they only 46 00:02:35,280 --> 00:02:38,080 Speaker 2: talk about low risk transactions. How do you know whether 47 00:02:38,160 --> 00:02:39,320 Speaker 2: something's low risk or not. 48 00:02:41,320 --> 00:02:43,400 Speaker 1: It's a good question, and I'd really be interested to 49 00:02:43,440 --> 00:02:48,839 Speaker 1: see how that's defined in the future, because I think 50 00:02:48,880 --> 00:02:52,040 Speaker 1: all of us have a sense of what is low risk, 51 00:02:52,080 --> 00:02:55,679 Speaker 1: because I think the vast majority of transactions that we do, 52 00:02:55,760 --> 00:02:57,799 Speaker 1: in the ones that I've been involved with, you are 53 00:02:57,840 --> 00:03:03,040 Speaker 1: dealing with really straightforward situations where it's clear where the 54 00:03:03,080 --> 00:03:07,760 Speaker 1: funds have come from, it's clear how the how the 55 00:03:07,800 --> 00:03:10,360 Speaker 1: trust was established, what the purpose of the trust was, 56 00:03:10,600 --> 00:03:12,880 Speaker 1: and everything like that. And then to cast the net 57 00:03:12,880 --> 00:03:15,560 Speaker 1: too wide and ask for all these invasive documents. Yeah, it's 58 00:03:15,600 --> 00:03:20,600 Speaker 1: it's it's it's cracking an utwith sleechhammer kind of approach. 59 00:03:21,360 --> 00:03:24,000 Speaker 1: So but you know, that's just my feel. I think 60 00:03:24,160 --> 00:03:28,560 Speaker 1: I think some clear guidance from the DA on what 61 00:03:29,560 --> 00:03:33,400 Speaker 1: constitutes at low risk will be will be very welcome, 62 00:03:35,160 --> 00:03:37,520 Speaker 1: a very welcome thing from them yet, because we all 63 00:03:37,520 --> 00:03:39,440 Speaker 1: have an idea, but you'd be better if we could 64 00:03:39,480 --> 00:03:40,600 Speaker 1: get some clear guidance on that. 65 00:03:40,680 --> 00:03:43,760 Speaker 2: Murray, appreciate your time tonight. Maray Thorne, Associate at McVeigh 66 00:03:43,800 --> 00:03:45,960 Speaker 2: Fleming talking to us about the government's move, the Cole 67 00:03:46,040 --> 00:03:48,280 Speaker 2: mckeys move today to make it easier if you've got 68 00:03:48,320 --> 00:03:51,600 Speaker 2: a house and a family trust, then the Government's going 69 00:03:51,640 --> 00:03:53,200 Speaker 2: to make it easier for you to ab to flick 70 00:03:53,200 --> 00:03:56,440 Speaker 2: it on without going digging up all of the files, 71 00:03:56,480 --> 00:03:58,960 Speaker 2: all in sundry in the bottom of your basement to 72 00:03:59,040 --> 00:04:00,480 Speaker 2: prove that you're not loaned ring money. 73 00:04:01,320 --> 00:04:03,520 Speaker 1: For more from Hither Duplessy Allen Drive. 74 00:04:03,680 --> 00:04:07,119 Speaker 2: Listen live to News Talks it B from four pm weekdays, 75 00:04:07,200 --> 00:04:09,400 Speaker 2: or follow the podcast on iHeartRadio.