Disclosure Requirements – Investment Funds – Netherlands
Disclosure Category: 2
Clearstream Banking S.A (“CBL”) may be required under the Netherlands laws and regulations to disclose the identity and holdings of customers and/or ultimate beneficial owners, upon request, in the case of holding investment funds in the Netherlands.
In order to comply with the applicable legislation, customers with holdings in Dutch investment funds or entering into transactions in the Netherlands 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 / financial instruments in their accounts with CBL.
Customers are advised that the local laws and regulations may 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.
Anti-Money Laundering and Terrorism Financing (Preventiona) Act (Wet ter voorkoming van witwassen en terrorismefinanciering)
Pursuant to Anti-Money Laundering and Terrorism Financing (Preventiona) Act (Wet ter voorkoming van witwassen en terrorismefinanciering), Dutch investment institutions are obligated to verify, on a continuous basis, the identity of the customer and ultimate beneficial owners of the fund units.
Background and legal basis
Legal basis for disclosure requirement may arise from the following:
- Know Your Customer (KYC) / Customer Due Diligence (CDD) requirements
- Anti-Money Laundering and Terrorism Financing Act (Wet ter voorkoming van witwassen en terrorismefinanciering), FSA, Sanctions Act (Sanctiewet 1977).
The investment fund may refuse or even terminate the business relationship if CBL customers or ultimate beneficial owners fail to comply with the disclosure request.
The customer undertakes to hold CBL harmless and to indemnify CBL from any loss, claim, liability or expense asserted against or imposed upon CBL as a result of the customer failure, whatever the failure, to comply with these disclosure requests.
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 2 October 2020. 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.