Disclosure Requirements – Investment Funds – Indonesia
Disclosure Category: 2
Clearstream Banking S.A (“CBL”) may be required, under the laws and regulations of Indonesia, to disclose the identity and holdings of customers and/or ultimate beneficial owners, upon request, in the case of holding Indonesia investment funds.
In order to comply with the local legislation, customers with holdings in Indonesian investment funds or entering into transactions in the Indonesia 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 of customers and beneficial owners from the fund custodian bank, and/or Regulators in Indonesia may result from local Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT) and Know-Your-Customer (KYC) requirements.
In certain limited circumstances, the fund and registrar may be entitled to request customer or beneficial owner information and holdings.
Monitoring regulations on cash instructions
The Central Bank of Indonesia, Bank Indonesia (BI), requires additional information (such as the country of domicile, relationship, purpose of transfer) for all incoming and outgoing cash movements above USD 10,000 (or equivalent) where a counterparty in Indonesian domestic market is involved. Please refer to Cash services - Indonesia for more information. It is the responsibility of the customer to ensure compliance with this requirement.
Failure to comply with such request for information in relation to the local regulation(s) may result in fines from the Indonesian Regulator(s) and/or the custodian bank refusing to conduct any transaction with the customer.
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 16 November 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. 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.