The prohibition of trust services

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The sanctions extended to the professional services that form an important part of Zug's economy. From October 2022, the European Union prohibited the registration of trusts for Russian nationals and residents and the provision of trustee, director and similar services to such trusts. Switzerland adopted the prohibition.¹ Trustees and fiduciaries in Zug and elsewhere had to end their mandates for Russian clients or apply for exemptions. The prohibition affected a part of the wealth management industry that Part F described. Its implementation raised difficult questions about the treatment of existing trusts, whose assets could not simply be returned to the settlors or beneficiaries without the consent of the authorities.

The trust practitioners of Zug, many of them members of STEP, the international association of trust and estate practitioners, have had to review their client books since 2022. Besides examining the nationality and residence of settlors and beneficiaries as well as the control of structures through protectors and advisers, they must consider the risk that assets have been transferred to relatives or trusted persons to avoid listing. The sanctions have accelerated a trend in the trust industry towards greater transparency and more extensive due diligence, which the register of beneficial owners will reinforce.

Notes

Germany Trade & Invest, "Chronologische Übersicht über EU-Sanktionen gegenüber Russland", gtai.de: the 8th package introduced the restrictions on trust services (Art. 5m of Regulation 833/2014). Federal Council, press release of 23 November 2022, admin.ch (nsb id 91875): Switzerland adopts the measures of the EU's eighth sanctions package, in force from 18:00 that day. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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The prohibition of trust services

Notes

Setting up or expanding in Switzerland?