Disclosure Requirements – Investment Funds – Gibraltar
Disclosure Category: 2
In the case of holding investment funds in Gibraltar, Clearstream Banking S.A (“CBL”) may be required under the laws and regulations of Gibraltar 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 Gibraltar investment funds or entering into transactions in the Gibraltar 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.
Background and legal basis
Disclosure of information on CBL customers and ultimate beneficial owners may arise from the following Gibraltar laws and regulations:
- Section 23 of the Proceeds of Crime Act 2015 (“POCA”)
- Section 10A of the Proceeds of Crime Act 2015 (“POCA”) – the Registrar would need to verify that any person purporting to act on behalf of the customer is so authorised and identify and verify the identity of the person
- Proceeds of Crime Act 2015 (“POCA”) Section 6
- Regulation 8 of the UBO regulations
Non-compliance with the disclosure requirements may result in the fund manager or its agent refusing acceptance of the proposed investment, and/or mandatory redemption of the existing holdings. A person guilty of an offence under the disclosure requirements may be convicted to imprisonment for a term not exceeding six months or to a fine not exceeding level 5 on the standard scale or to both; or on conviction on indictment, to imprisonment for a term not exceeding fourteen years or to a fine or to both.
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 3 March 2022. 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.