Disclosure Requirements - Investment Funds - Saint Vincent and the Grenadines
Disclosure Category: 2
Clearstream Banking S.A (“CBL”) may be required to disclose the identity and holdings of customers and ultimate beneficial owners, upon request, in the case of holding of securities in Saint Vincent and the Grenadines (SVG) investment funds.
In order to comply with the local legislation, customers with holdings in SVG investment funds or entering into transactions in the SVG 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 the local laws and regulations oblige CBL to disclose the requested information on CBL customers and ultimate beneficial owners to the party that is entitled by law to receive such information.
Under the SVG anti-money laundering (AML) laws and regulations, the Registrar/SVG investment fund are considered as “service providers”. Consequently, they are required to obtain customer due-diligence (CDD) information on every customer, third party and beneficial owner.
The Financial Intelligence Unit of SVG (FIU) provides guidelines on the type of due-diligence information required, and has the primary oversight on the enforcement of these requirements.
Background and legal basis
In the case of holding of securities in SVG investment funds, CBL is obliged under the following legislation to disclose the identity and holdings of customers, third parties and/or ultimate beneficial owners.
- Mutual Funds Act Cap 154;
- Mutual Funds Regulations;
- Anti-Money Laundering and Terrorism Financing Regulations 2014.
No statutory penalties are expected to be imposed on CBL or its customers for non-compliance. However, if CBL/CBL’s customer/beneficial owners fail to comply with the disclosure request, the Investment Fund would commit an offence under the Mutual Funds Act and would be liable on summary conviction to a fine or imprisonment or both. The Investment Fund which did not receive the required documents may refuse subscriptions from CBL in order to comply with the Mutual Funds Act and AML/KYC requirements.
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 28 November 2018. CBL believes the information to be correct as of that 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.