Non-Travel Trusts
Non -Travel Arrangements
At Premio Consultancy, the Package Travel Trust accounts, operating benefits and service delivery standards ascribed to ATOL apply to these Non-Regulated Non-Travel Accounts.
These Non-Travel accounts are operated for organisations such as Merchant Acquirers Providers of concierge services, Gift Card and Vouchers and Event Management.
Merchant Acquirers collect funds for Merchants and require these funds to be secured. This is done in accordance with a set of obligations agreed upon by the Merchant Acquirer and its merchant.
This Non-Travel arrangement involves three parties:
Trustee – Beneficiary – Merchant.
Release of funds is processed by Trustee in accordance with the Non-Travel agreement in place.
Non-Travel Trusts
What is a Non -Travel arrangement?
A Non-Travel agreement is a contract that defines a financial arrangement between two parties where:
– one party (“Buyer”) deposits funds with Trustee in a specified client account. The funds are held in “trust” for the second party (“Seller”) for a given transaction or series of transactions between the two parties. Trustee then holds and regulates payment of the funds or delivery of the asset to the Seller when the contract conditions are met.
The Trustee services help ensure the security of transactions by ensuring the funds are kept in a secure Non-Travel account which are only released when all of the terms of an agreement are met as overseen by the Non-Travel company.
The Trustee company would work with both the Buyer and the Seller to hold the funds under a set of rules and conditions set out in the Non-Travel agreement which the three parties would sign.
Non-Travels are very useful in the case of a transaction where a large amount money is involved in single and multiple transactions and a certain number of obligations need to be fulfilled before a payment is released.
Non-Travel Trusts
How does Non-Travel Trust Work?
Non-Travel Trusts
Non-Travel agreement
The conditions documented in the Non-Travel agreement would:
1. Define and specify the terms agreed between the Buyer and Seller and all parties agree to the terms of the transaction(s).
2. The Buyer would deposit the funds into the Non-Travel account and provide information pertaining to the deposit to Trust Account. Trustee would notify the receipt of funds to the Seller.
3. The Seller then completes its responsibilities as agreed between the Buyer and the Seller. Upon performance the Buyer would advise Trustee to release the relevant funds to the Seller. Trustee would conduct its own appropriate due diligence as specified in the Non-Travel agreement before releasing the funds.
4. Such a Non-Travel arrangement can involve multiple transactions over a period.
5. The Trustee company may engage the services of other experts and legal and professional advisors where it needs specialist advise to confirm performance. The use of such experts and their fees would be agreed in advance and form part of the overall cost of providing the service.
Non-Travel Trusts
Non - Travel Accounts
Non-Travel accounts will be held with recognised reputable mainstream banks who would be notified of the arrangements and the Non-Travel funds are held in those secure Non-Travel Accounts until the transaction is completed. This ensures that these funds are held in a ring- fenced structure free of encumbrances.