Disclosure Requirements - Investment Funds - Bermuda
Disclosure Category: 2
In the case of holding investment funds in Bermuda, Clearstream Banking S.A (“CBL”) may be required under the laws and regulations of Bermuda to disclose, upon request, the identity, information and holdings on CBL customers and ultimate beneficial owners.
In order to comply with the local legislation, customers holding Bermuda investment funds or entering into transactions in the Bermuda market must consent and are hereby deemed to consent to the required legal disclosure. Such consent includes the appointment of the requestor (for example, the Fund Manager, Transfer Agent, Regulator) as their attorney-in-fact, under power of attorney, to collect from CBL the required information to be disclosed. Customers who do not grant such authority cannot hold such investment funds or financial instruments in their accounts with CBL.
Customers are advised that under local laws and regulations, investment funds and its agents may require CBL, on request, to disclose information on CBL customers and ultimate beneficial owners.
Entities registered in Bermuda that are carrying on financial business are required to conduct anti-money laundering, know your client checks on their shareholders and unitholders.
Background and legal basis
Disclosure of information on CBL customers and ultimate beneficial owners may arise from the following Bermuda laws and regulations:
- Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008
Non-compliance with the disclosure requirements may result in the fund manager or its agent refusing acceptance of the proposed investment, mandatory redemption of the existing holdings filing a suspicious activity report with the relevant authority and/or freezing the dealing of units or shares.
The information contained in the Disclosure Requirements is based on the legal opinion that was issued on 2 October 2020. CBL believes the information to be correct as of the issuance date but disclaims any responsibility as to the accuracy and completeness of the information after that date. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Disclosure Requirements do not constitute legal advice and customers should seek advice from independent professional counsel.
Customers are responsible for ensuring compliance with the disclosure requirements and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.