Disclosure Requirements - Investment Funds - Liechtenstein
Disclosure Category: 2
Clearstream Banking S.A (“CBL”) may be required to disclose the identity and holdings of customers and ultimate beneficial owners, upon request, in the case of holding of securities in Liechtenstein investment funds.
In order to comply with the local legislation, customers with holdings in Liechtenstein investment funds or entering into transactions in the Liechtenstein 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 the local laws and regulations 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.
The Liechtenstein Due Diligence Act (DDA) sets out detailed rules for compliance with KYC obligations to which Liechtenstein Investment Funds must comply. CBL must thus deliver the information which a Liechtenstein investment fund requests from CBL under the DDA in relation to CBL and CBL’s clients/ultimate beneficial owners as owners and/or holders of fund units in the relevant investment fund.
Background and legal basis
In the case of holding Liechtenstein Investment Funds, CBL is obliged under the following legislation to disclose the identity and holdings of customers, third parties and/or ultimate beneficial owners.
- Due Diligence Act (DDA) dated 11 December 2008 LGBl.2009/47
- Executing regulation for the DDA (DDR)
- Automatic Exchange of Information
Sanctions and other consequences may be applied in case of non-compliance to disclosure requirements. The consequences can range from the refusal to commence the business relationship with CBL or the termination of an existing business relationship, to notifications to the Financial Intelligence Unit (FIU) if such non-compliance results in a suspicion of money laundering, a pre-ceding activity of money laundering, organised crime or the financing of terrorism. The FIU can order that ongoing transactions are stayed for a certain period of time. In a suspicion of the financing of terrorism the Registrar would have to block the respective account.
The information contained in the Disclosure Requirements is based on the legal opinion obtained by CBL that was issued on 26 February 2019. 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.