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<<<It would be more than a little awkward for the financial institution to subsequently learn that the grantor and/or beneficiaries are connected to ill-gotten gain and might, as a result, the financial institution may have liability for money laundering or other aiding and abetting charges - gambling, illegal drugs, trafficking, etc.


"Perhaps Texas Property Code - PROP § 114.086. Certification of Trust could help with the BWDIK part. Specifically, paragraph (f)

(f) A person who acts in reliance on a certification of trust without knowledge that the representations contained in the certification are incorrect is not liable to any person for the action and may assume without inquiry the existence of the facts contained in the certification."

Maybe. Texas law, however, will not preempt federal law and regulations and such a certificate may not satisfy the federal requirements.

"None of this would prevent a financial institution from investigating the trustee and/or the trust. Since the certificate must include the name of the settlor (aka grantor), they could investigate that person as well."


"And, as you mention, there are still KYC issues. The institution could certainly ask for additional information about the trust, and refuse to do business with the trust if that information wasn't provided. On the other hand, there are likely multiple ways of satisfying KYC."

I am not familiar with the details of KYC.

"PS - Do the lawyers writing law have an aversion to commas and periods and other punctuation? Must every sentence in the law be compound and complex? And contain more than 40 words?"

I do not write laws, but I know that it can be very difficult, especially with complex concepts or with multiple exceptions.

See e.g., regarding an Oxford comma and see for another discussion of the same case and other cases

Regards, JAFO
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