Disclosure Requirements – Investment Funds – Cayman Islands
Disclosure Category: 2
Clearstream Banking S.A. (“CBL”) may be required to disclose the identity and holdings of customers and/or ultimate beneficial owners, upon request, in the case of holding Cayman Islands investment funds.
In order to comply with the applicable legislation, customers with holdings in Cayman Islands investment funds or entering into transactions in the Caymanian 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.
Background and legal basis
Customers are advised that disclosure requests from fund managers, its agents and/or Regulators in Cayman Islands may result from the following laws and requirements:
- Proceeds of Crime Law Cayman 2019
- Anti -Money Laundering Regulations (2020 Revision)
- Guidance Notes on the Prevention and Detection of Money Laundering in the Cayman Islands.
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 of suspicious activity report with the relevant authority and dealing the units/shares may be frozen pending investigation.
The information contained in the Disclosure Requirements is based on the legal opinion that was obtained by CBL 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.