Disclosure Requirements – Investment Funds – Malaysia
Disclosure Category 2
Clearstream Banking S.A (“CBL”) may be required, under Malaysian laws and regulations to disclose the identity and holdings of customers and/or ultimate beneficial owners, upon request, for holding Malaysian investment funds.
In order to comply with the local legislation, customers holding Malaysian investment funds or entering into transactions in the Malaysian 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 to CBL cannot hold such investment funds or financial instruments in their accounts with CBL.
Background and legal basis
CBL is not obliged, and cannot be compelled legally, to disclose the details of its customers and beneficial owners, even upon request by the investment fund. However, investment funds are obligated to conduct customer due-diligence processes according to the following:
- Companies Act 2016;
- Central Bank of Malaysia Act 2009;
- Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFA);
- Anti-Money Laundering and Anti-Terrorism Financing (Reporting Obligations) Regulations 2007 (2007 Regulations).
In general, the management companies, the trustees of the unit trust schemes and the company secretary of a fund in corporate form are reporting institutions in Malaysia who are obligated under the AMLATFA and the 2007 Regulations to perform the required customer due diligence measures. This may include the reporting institution seeking additional information and documentation from CBL on CBL’s customers and/or ultimate beneficial owners.
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 12 December 2017. 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. Where there is 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.