Banking and trusts: how financial institutions work with trusts

6 reference pages on how banks and trust companies relate to trusts, account opening and due diligence, U.S. reporting for foreign accounts, and criteria used to evaluate institutions.

How this section works

These pages set out the processes and published rules that shape how banks and trust companies work with trusts.

All banking pages

Due diligence and controlling persons of a trustThe CRS describes due diligence as account review by institutions to identify reportable accounts and information, including tests for entity accounts.FATCA and foreign financial institutionsFATCA requires foreign financial institutions to report information on accounts held by U.S. taxpayers and by foreign entities with substantial U.S. ownership.FBAR and Form 8938 for accounts linked to trustsFBAR and Form 8938 are separate reports with different filing tests for a U.S. citizen. IRS instructions describe foreign accounts as well as trust interests.Foreign trust forms and the accounts behind themForms 3520 and 3520-A cover transfers to a foreign trust, its ownership and its distributions. Bank accounts behind a trust add separate FBAR and 8938 rules.How banks and trust companies work with trustsBanks may maintain trust accounts or act as trustees. A trustee holds property for beneficiaries, and trust documents can define fiduciary duties and powers.Licensed trustees and trust companiesTrustee rules depend on the jurisdiction and the trust's activity. Where a jurisdiction regulates trust company business, its licensing rules set who may act as a professional trustee.

Talk to Richard

In more detail

The CRS sets standardized rules for which financial institutions and accounts are covered, what due diligence they perform, and what information they report. For a new account, an institution generally requires a self-certification to determine the account holder's tax residence. The account holder generally provides additional information for that determination, while institutions may generally use existing files for accounts opened before the applicable cutoff.^[1]

When a financial institution lists a trust or estate as the account holder, the CRS treats the trust or estate as the Account Holder, rather than its trustee, owners, or beneficiaries. Under the CRS, a trust's settlors, trustees, protectors, beneficiaries or beneficiary classes are controlling persons regardless of whether they control its activities, but applicable local guidance may treat discretionary beneficiaries as controlling persons only when they receive distributions.^[2]

Related reading

For the relationship between a bank account and a trust, see How banks and trust companies work with trusts, which describes trust accounts and trustee roles. Due diligence and controlling persons of a trust covers account review and controlling persons. FATCA and foreign financial institutions addresses financial institution reporting duties. FBAR and Form 8938 for accounts linked to trusts connects trust accounts to U.S. account reporting. IRS reporting for U.S. persons with foreign trusts provides a broader library of IRS and FinCEN reporting references.

Related glossary terms

Financial account (CRS): The Common Reporting Standard defines accounts at financial institutions, including deposit and custody accounts, plus equity and debt interests and insurance.
Participating foreign financial institution: The IRS describes a participating foreign financial institution as an FFI that reports U.S. account holders who are specified U.S. persons under FATCA.
Intergovernmental agreement: An intergovernmental agreement appears in FATCA rules for foreign financial institutions. Form 8938 instructions also use the term for certain foreign accounts.

Tools and official documents

IRS and FinCEN forms: reference pages: Reference pages for 15 IRS and FinCEN forms tied to foreign trusts, foreign accounts and entities, built from the official forms and their instructions.
Foreign trust reporting role finder: Tick the roles that describe a connection to a foreign trust or foreign account to see the forms the IRS and FinCEN instructions discuss. Roles can overlap.

Sources and data notes

oecd.org, Standard for Automatic Exchange of Financial Information in Tax Matters: Implementation Handbook, Second Edition. https://www.oecd.org/content/dam/oecd/en/publications/reports/2018/03/standard-for-automatic-exchange-of-financial-information-in-tax-matters-implementation-handbook-second-edition_a52535ec/841e9512-en.pdf. Retrieved 2026-10-15.
crs.hsbc.com, How to fill the Common Reporting Standard Entity self-certification form (February 2026). https://www.crs.hsbc.com/-/media/crs/pdfs/gpb/crs-entity-classification-guide.pdf. Retrieved 2026-10-15.

Dates in this block record when each source was read for this page.