United States: Executive Order 13959 as amended ‒ Finance of Communist Chinese Military Companies ‒ Update XI
Note: This announcement, originally published on 7 January 2021 and updated on 8 January, 28 January, 24 February, 8 March, 15 March, 7 May 2021 and 28 May, 10 June, 16 July and 30 July 2021, has been further updated. Matured ISIN have been removed from the list and representation must be provided for all deliveries from now on.
Clearstream Banking1 informs customers that United States Executive Order 14032, issued by President Biden on 3 June 2021, recasts and clarifies Executive Order 13959 as amended (the “Executive Order” or "E.O."), under which transactions involving the purchase by United States persons2 (“U.S. persons”) of securities issued by companies on the Non-SDN Chinese Military-Industrial Complex Companies List published by the Office of Foreign Assets Control (OFAC), as well as derivatives of, and securities which provide an economic exposure to, such OFAC-listed securities (collectively, “CMIC Securities”), are prohibited from 2 August 2021 12:00 AM U.S. Eastern Daylight Time (EDT).
The restrictions applicable to any securities of an entity which may be identified in the future as a CMIC would take effect at 12:01AM EDT 60 days after the issuing entity is listed. Any divestment from the securities issued by newly identified CMICs in the future could be made for 365 days from the effective date of the listing of such entities.
Clearstream Banking customers are reminded that divestment of the CMIC securities listed below by U.S. persons to non-U.S. persons has not been permitted since 3 June 2022.
For any settlement instructions to receive or to deliver, in respect of the below securities, Clearstream Banking customers must provide a representation of sanctions compliance in the narrative field of their instruction (for example, field :70E::SPRO// of the MT54x instruction) or in a separate authenticated message (for example, MT599) referencing their instruction ID. The required sanctions representation wording is as follows: “EO13959COMP We represent this instruction is compliant with U.S. E.O. 13959 as amended and is not a sale by U.S. persons, nor a sale to or an acquisition by or for a U.S. person in breach of E.O.13959". For field :70E::SRPO// and due to the 70-character space restriction of that field, Clearstream Banking customers can provide the key word “EO13959COMP” in this field to denote that they have ensured the full sanctions compliance of the instruction with E.O. 13959 as amended.
Common code | ISIN | Issuer name | Restrictions effective from Trade Date |
5354820 | CNE100000395 | CSSC Offshore & Marine Engineering (Group) Co Ltd | 2 August 2021 |
11399207 | HK0941009539 | China Mobile Limited | 2 August 2021 |
12550260 | US1261321095 | CNOOC Ltd | 2 August 2021 |
15712864 | CNE1000002V2 | China Telecom Corp Ltd | 2 August 2021 |
15709260 | US1694261033 | China Telecom Corp Ltd | 2 August 2021 |
19005836 | HK0883013259 | CNOOC Ltd | 2 August 2021 |
18777754 | US81663N2062 | Semiconductor Manufacturing International Corp | 2 August 2021 |
27775195 | CNE1000002F5 | China Communications Construction Company Ltd | 2 August 2021 |
123327519 | XS1233275194 | Proven Honour Capital Ltd | 2 August 2021 |
140181676 | XS1401816761 | Proven Honour Capital Ltd | 2 August 2021 |
154216812 | KYG8020E1199 | Semiconductor Manufacturing International Corp | 2 August 2021 |
156742350 | XS1567423501 | Proven Glory Capital Ltd | 2 August 2021 |
156742376 | XS1567423766 | Proven Glory Capital Ltd | 2 August 2021 |
35053794 | CNE100000981 | China Railway Construction Corporation Ltd | 2 August 2021 |
7975040 | CNE1000003T4 | Nanjing Panda Electronics Company Ltd | 2 August 2021 |
39591812 | HK0000049939 | China Unicom (Hong Kong) Ltd | 2 August 2021 |
210182845 | XS2101828452 | Semiconductor Manufacturing International Corp | 2 August 2021 |
Instructions without the required representation of sanctions compliance may not be able to settle or may experience delays in settlement, including at domestic market level.
Customers should take note that the securities listed in this communication will not be made eligible for collateral or lending purposes.
Notwithstanding the above requirements, customers are reminded that according to the Clearstream Banking General Terms and Conditions, Clearstream Banking customers are responsible for ensuring that all instructions settled by them through Clearstream Banking comply with applicable laws, including sanctions.
As a matter of good practice, customers should also observe any investment or selling restrictions (for example, regarding U.S. investors) stipulated in the securities issuance documentation. This includes the documentation covering for example, Structured Products, ETFs and Investment Funds. Clearstream Banking customers therefore need to ensure that instructions in this context are also in compliance with U.S. E.O.13959 as amended and do not represent a sale to or an acquisition by or for a U.S. person in breach of E.O.13959 as amended.
Under Clearstream Banking's terms of business, customers are further reminded that, by engaging in or settling any transaction in CMIC Securities including exchange-traded instruments using facilities provided by Clearstream Banking, customers represent, and agree that they will be deemed to reconfirm each time they instruct involving CMIC Securities using such facilities, that they are aware of the restrictions imposed by E.O.13959 as amended, that they have conducted reasonable due diligence on the parties to the transaction and that the transaction is permissible under E.O.13959 as amended.
Further information
For further information, please contact Clearstream Banking Customer Service or your Relationship Officer.
In addition, new and amended FAQs issued by the US Treasury Department’s OFAC, as well as the CMIC Companies list, are available on the OFAC website here.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. A United States (U.S.) person is “a U.S. citizen, a U.S. permanent resident alien, an entity organised under the laws of the U.S. (including its foreign branches) or any individual or entity in the United States".